Receivables Audit Steps (2 of 4)
D. Perform further audit procedures—tests of controls.
1. Examples of tests of controls:
a. Examine significant aspects of a sample of sales transactions.
b. Compare a sample of shipping documents to related sales invoices.
c. Review the use and authorization of credit memoranda.
d. Reconcile selected cash register tapes and sales tickets with sales
journals.
e. Test IT application controls.
f. Examine evidence of review and approval of revenue estimates.
2. If necessary, revise the risks of material misstatement based on the
results of tests of controls.