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Auditing revenue and cycle is a tough subject to understand. It is very important for accounting as it helps business to understand its financial position. There are lot of formulas and theories to be remembered and understood to complete the assignment on auditing revenue and cycle.
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Before we tell you more about auditing revenue and cycle assignment help, let’s try to understand few important aspect of this subject.
Auditing revenue and cycle:
Auditing Revenue and Cycle incorporate a huge variety of activities such as recommendations and permissions, insurance coverage confirmation and task, charging, coding, declares submission, receivable follow-up, changes, write-offs and payments, and customer care. Showing that the revenue cycle effects almost each element of the operation assists communicate the audit function’s value.
Auditing revenue is a part of monitory audit where the auditor should examine and identify the various difficulties related to the revenue cycle and take necessary steps to see business can run smoothly without making loss. Revenue cycle is maintained for specific dates to keep a check on the sales made and profit earned. If there is loss then management has to perform various tests and take decisions accordingly. Auditing revenue and cycle is recorded under the fundamental principles set by generally accepted accounting principles (GAAP).
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Different auditing and revenue cycles:
1) Sales and collection cycle
2) Payment and acquisition cycle
3) Payroll and workers cycle
4) Stock and warehousing cycle
5) Payment and capital acquisition cycle
Auditing of these different cycle helps business to understand different monetary aspect which is recorded in journal under sales journal, invoice journal, payroll journal, basic journal etc. These records are then transferred to balance sheet to understand the financial reasons.
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