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Hello The Answer To My Question will be a Bit Lengthy I trust, I was going through the f8 notes and it was quite evident that one must have sound knowledge of the revenue cycle, purchases, expenses, inventory and non current assets acquistion , how they are recorded meaning to say that first recorded in non current asset register etc I need full detail from start to finish of how and where they are recorded please help
Revenue = sales:
Order – despatch – invoicing – payment received.
It’s all covered well in the lectures.
I wanted to know abt the process itself for example when GRN and GDN is given and for example I’n Non Current Asset Register what goes etc. As when writing audit procedures I am unaware to link things for example what to compare GRN with if we want to test for Assertions like Completeness, if all of these things are covered I’m lectures then its great otherwise it would be great if u could provide a link or explain me extensively please
Order received
Credit and stock availability checked
Goods dispatched (GDN)
Invoice issues and receivables debited
Statements issued to customers + other credit control procedures
Money received (we hope) and receivables account credited.
As it says in lectures, you want:
1 A ‘watertight’ trail from order to money being received so that any errors or omissions are picked up (eg how do you guarantee that n invoice is raised for each despatch?)
2 You need to be able to trace both ways ie order right through to cash being received and, from the bank account, from cash being received back to order.
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