5. What is automation, and why is it used?
6. What is the objective of reengineering?
7. Distinguish between an edit run, sort run, and
update run.
8. How is the record’s primary key critical in preserv-
ing the audit trail?
9. What are the advantages of real-time processing?
10. Why does billing receive a copy of the sales order when the order is approved but does not bill until the goods are shipped?
negative confirmation open-invoice system packing slip
positive confirmation reengineering remittance advices remittance list
return slip
sales invoice
sales invoice file
sales journal voucher
sales order
shipping notice
stock release (picking ticket)
11. How do tests of controls relate to substantive tests?
12. In a manual system, after which event in the sales process should the customer be billed?
13. What is a bill of lading?
14. What document initiates the billing process?
15. Where in the cash receipts process does supervi-
sion play an important role?
16. List the revenue cycle audit objectives derived
from the “existence or occurrence” management
assertion.
17. List the revenue cycle audit objectives derived
from the “completeness” management assertion. 18. List the revenue cycle audit objectives derived
from the “accuracy” management assertion.