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    19l (12-00) Develop The Audit Program - Revenues

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    Anh Tuấn Trần
    This audit program summarizes objectives and procedures for auditing revenues and cost of goods sold (COGS) for Orion Hanel Picture Tube Co Ltd for the year ended December 31, 2002. The objectives are to verify that all revenues have been recorded correctly and earned in the proper period, and all COGS relate to revenues earned. The audit procedures include analytical reviews of revenue accounts, testing of revenue transactions, clerical checks, and referrals to other audit programs for cut-off testing and investment income.

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    19l (12-00) Develop The Audit Program - Revenues

    Uploaded by

    Anh Tuấn Trần
    87 views2 pages
    This audit program summarizes objectives and procedures for auditing revenues and cost of goods sold (COGS) for Orion Hanel Picture Tube Co Ltd for the year ended December 31, 2002. The objectives are to verify that all revenues have been recorded correctly and earned in the proper period, and all COGS relate to revenues earned. The audit procedures include analytical reviews of revenue accounts, testing of revenue transactions, clerical checks, and referrals to other audit programs for cut-off testing and investment income.

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    19l (12-00) Develop the Audit Program - Revenues

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    This audit program summarizes objectives and procedures for auditing revenues and cost of goods sold (COGS) for Orion Hanel Picture Tube Co Ltd for the year ended December 31, 2002. The objectives are to verify that all revenues have been recorded correctly and earned in the proper period, and all COGS relate to revenues earned. The audit procedures include analytical reviews of revenue accounts, testing of revenue transactions, clerical checks, and referrals to other audit programs for cut-off testing and investment income.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    87 views2 pages

    19l (12-00) Develop The Audit Program - Revenues

    Uploaded by

    Anh Tuấn Trần
    This audit program summarizes objectives and procedures for auditing revenues and cost of goods sold (COGS) for Orion Hanel Picture Tube Co Ltd for the year ended December 31, 2002. The objectives are to verify that all revenues have been recorded correctly and earned in the proper period, and all COGS relate to revenues earned. The audit procedures include analytical reviews of revenue accounts, testing of revenue transactions, clerical checks, and referrals to other audit programs for cut-off testing and investment income.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Develop the Audit Program – Revenues and COGS Ref.

    :
    Page: 1/2
    Client: ORION HANEL PICTURE TUBE CO LTD Audit date: 31 Dec 2002

    Financial Statement Assertions


    Audit Objectives: E/O C R& V/M P&D
    O
     All sales included in the income statement represent the exchange of goods or  
    services with customers for cash or other consideration during the period. All
    other revenues included in the income statement for the period have accrued to
    the entity at the balance sheet date. Revenues applicable to future periods have
    been deferred.
     All sales and other revenues that accrued to the entity during the period are 
    included in the income statement.
     Sales and other revenues are stated in the income statement at the appropriate 
    amounts.
     Sales and other revenues are properly classified, described, and disclosed in the 
    financial statements, including notes, in conformity with prescribed accounting
    principles.

    Assertions:
    Existence or Occurrence, Completeness, Rights and Obligations, Valuation or Measurement, Presentation and Disclosure

    Audit Procedures to Consider

    Assertions Auditor
    addressed Check if
    by the item is W/P Sign-
    procedure applicable Ref. Off
    All 1. Obtain or prepare a comparative analysis of sales (by product            
    line, location, etc.) and other income accounts for the current and
    preceding year and obtain explanations from the client for
    accounts that changed by the greater of TE or       %.
    All 2. Review sales activity by month/quarter for unusual fluctuations            
    (consider breakdown by product line or location, if available).
    Consider comparison to prior year's amounts.
    O, C, V 3. Perform additional analytical review procedures, as follows:            
    a) If not performed as Accounts Receivable step #5, compare            
    discounts, returns, and allowances with prior year (or % of
    sales).
    b) Compare actual revenues to budgeted revenues and obtain            
    explanations for major variances — can be done in
    connection with Costs and Expenses step #2a.
    c)                  
    O, C, V 4. If not performed as Accounts Receivable step #9, review the            
    accounts receivable and sales accounts in the general ledger and
    the sales and cash receipts journals for unusual items. Investigate
    any unusual items observed.
    All 5. Select 20 sales transactions from throughout the year and support            
    proper recording by comparing sales invoice information to
    shipping documents and tracing the invoice through the
    accounting system to recording in the general ledger.
    All 6. Select 20 shipment transactions from the shipping records from            
    throughout the year and support proper recording by comparing
    Date:

    e
    E&Y SMALL BUSINESS DOCUMENTATION Prepared by:

    SB-19l (12-00) Develop the Audit Program - Revenues Reviewed by:


    Develop the Audit Program - Revenues Ref.:
    Page: 2/2

    Assertions Auditor
    addressed Check if
    by the item is W/P Sign-
    procedure applicable Ref. Off
    information from the shipping documents to invoices and tracing
    invoice information through the accounting system to recording
    in the general ledger.
    C 7. Check the numerical sequence of sales invoices and/or shipping            
    documents for completeness.
    C, V, P&D 8. Test the clerical accuracy of the sales journal for 2 months during            
    the year and trace totals to proper posting in the general ledger.
    See A/R 9. Refer to Accounts Receivable for the procedures relating to tests            
    program
    of cutoff of sales invoices and credit memos.
    O, C, V 10. Review the other non-current credit accounts in the general            
    ledger for unusual items. Examine support for the charges to
    these accounts during the year.
    See 11. Refer to Investments for the procedures relating to tests of            
    Investments
    program
    interest and dividend income and related accrual accounts, and
    equity in earnings (losses) of investees.
    See 12. Refer to Investments for testing of gains and losses from the sales            
    Investments
    program of investments and securities recorded during the year.
    13.                  
    14.                  

    Date:

    e
    E&Y SMALL BUSINESS DOCUMENTATION Prepared by:

    SB-19l (12-00) Develop the Audit Program - Revenues Reviewed by:

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