Sales are recorded on the correct

amount of service rendered and

are correctly billed and recorded

Sales transactions are correctly

accounts receivable master file

Existing sales transactions are

Sales transactions are correctly

Recorded sales are for services

Recorded sales are for the

summarized (posting and

to nonfictitious customers

and are correctly

(completeness).

summarization).
included in the

(classification).
actually made

(occurrence).

(accuracy).
recorded

classified

(timing).
dates
Separation of duties exists
among billing, recording of
sales, and handling of cash
receipts

Sales transactions are

internally verified

Accounts receivable master

file is reconciled to the
general ledger on a monthly
basis

Recorded sales are

supported by authorized
cash receipts and approved
customer orders

All receipts are recorded on

pre-numbered cash receipts
tickets, including those
received in check form.

All cash receipts are counted

by the cashier and recorded in a
cash receipts journal or the
general ledger on a daily basis.

Price lists are used,

reviewed and approved
periodically by an authorized
person.

Assessed control risk

 Recorded sales are for shipments actually made Recorded sales are for the amount of goods
to nonfictitious customers (occurrence). shipped and are correctly billed and recorded
(accuracy).

Existing sales transactions are recorded Sales are recorded on the correct dates
(completeness). (timing).

Sales transactions are correctly included in the

accounts receivable master file and are correctly
summarized (posting and summarization).

Sales transactions are correctly classified

(classification).