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Audit Matrix Program - Revenue: Test Area: Cash Applications

This document outlines an audit matrix for testing controls related to revenue cash applications at the business unit level. It identifies the risk of improper cash application as high and lists test procedures to ensure remittances are properly recognized, recorded, and applied to customer accounts timely. The procedures focus on cash application processes, unapplied remittances, other relevant procedures and controls, and identifying best practices. The matrix will be used to document the procedures in place, reports used, control owners, and determine if controls are met or require action plans.

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Zain Farozdaq
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23 views

Audit Matrix Program - Revenue: Test Area: Cash Applications

This document outlines an audit matrix for testing controls related to revenue cash applications at the business unit level. It identifies the risk of improper cash application as high and lists test procedures to ensure remittances are properly recognized, recorded, and applied to customer accounts timely. The procedures focus on cash application processes, unapplied remittances, other relevant procedures and controls, and identifying best practices. The matrix will be used to document the procedures in place, reports used, control owners, and determine if controls are met or require action plans.

Uploaded by

Zain Farozdaq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Contributed September 4, 2002 by SKohl@hagemeyerna.

com

Audit Matrix Program Revenue


Test Area: Cash Applications
Risk
L = Low
M = Medium
H = High

Level
E=Enterprise
S=Site
B=Business Unit

Status
D = Done
N = Not Applicable
S = Scoped Out

Risk: H
Control Objectives: To ensure that all remittances are properly recognized, recorded and applied to customer accounts on a timely
basis.
Test
Test / Control Procedures
Background Information
Control Conclusion
W/P
Level
(Procedures in Place, Reports Used,
(Control Met or
Status/Ref
and Control Owners)
Action Plans and Due
Date)
B
A.) Cash Applications 1. Document and understand procedures in
place for the application of remittances to
customer accounts. Include lock box
receipts, wire transfers, banking
procedures, over-the-counter sales, batch
applications, reports used by management
and segregation of duties.
2. Review controls in place for the accuracy
of applications to customer accounts.
3. Document procedures in place for daily
posting of remittances to the accounting
records. Include the handling of credit
card sales and note how remittances are
handled upon receipt, i.e. number of bank
accounts.

Contributed September 4, 2002 by [email protected]

Contributed September 4, 2002 by [email protected]

Test
Level

Test / Control Procedures

B.) Unapplied Remittances 4. Document procedures in place for the


review and subsequent posting of
unapplied remittances. Include the review
of reports used by management for the
tracking and recording of unapplied
remittances.
5. Document and record controls in place to
ensure the physical safeguards of received
remittances. (i.e lockbox arrangements,
cash on hand, work area layouts, safes,
etc.)
C.) Other Procedures
1. Review and document other procedures,
processes and controls related to the cash
applications process.
D.) Best Practices/Process Improvements
1. Document best practices/process
improvements, i.e. process efficiencies
shared and/or identified related to the
cash applications process.

Background Information
(Procedures in Place, Reports Used,
and Control Owners)

Control Conclusion
(Control Met or
Action Plans and Due
Date)

W/P
Status/Ref

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