- 1 Marks
AA – L2 – SA – Q3.6 – Revenue System Deficiencies
Consequences of revenue system shortcomings.
Question
- The following shortcomings have been identified in Apex Ltd’s revenue system. For each deficiency select the most likely consequence.
- Invoices are not checked for arithmetic accuracy before being issued to customers
A Company may process loss-making sales orders
B Cash receipts are not recorded correctly in the cashbook
C Increased risk of client dissatisfaction - Sales discounts are not authorized prior to being given
D Company may process loss-making sales orders
E Cash receipts are not recorded correctly in the cashbook
F Increased risk of client dissatisfaction
Find Related Questions by Tags, levels, etc.
- Tags: Client Dissatisfaction, ICAG, Internal controls, Revenue System
- Level: Level 2
- Topic: Audit and Assurance Evidence
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