Lecture notes
To identify tests of internal controls
- Module
- Assurance
- Institution
- Coventry University (West Midlands) (CU)
To identify tests of internal controls
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,Module title: Assurance
Week number: 1 2 3 4 5 6
Session number: 1 2 3 4 5
Session title: The accounting systems and internal controls
Aims & Objectives
To gain knowledge and understanding of the revenue accounting system
To identify the relevant internal controls to mitigate risk
To identify tests of internal controls
To apply internal controls to activities
Introduction
In this session, we will look at revenue system and the internal controls associated with it.
For, example, the sales ordering controls and the risk associated with it, such as accepting
customers with poor credit risk; the sales despatch notes and invoicing controls and the
associated risks such as despatching goods to customers but not invoicing them. We will also
consider how the auditor or assurance provider, test the controls are in place and operating
efficiently and effectively.
You will be required to do the selective worked examples and interactive questions in the
(ICAEW, 2016) Assurance Study Manual and Question Bank to give you a more
comprehensive application of the topics covered in the course pages.
At this level of your degree, it is expected that in addition to the course pages and tutor
support provided, you must carry out academic research work to give a wider knowledge and
understanding of the subjects covered in these course pages.
We will also provide a number of activities for you to attempt, in order to test your
knowledge and understanding from case studies and short questions.
Discussion Question
[2]
, N/A
Glossary
N/A
Summary
In this session, we looked at revenue system and the internal controls associated with it. For,
example, the sales ordering controls and the risk associated with it, such as accepting
customers with poor credit risk; the sales despatch notes and invoicing controls and the
associated risks such as despatching goods to customers but not invoicing them. We also
considered how the auditor or assurance provider, test the controls are in place and
operating efficiently and effectively.
You were required to do the selective worked examples and interactive questions in the
(ICAEW, 2016) Assurance Study Manual and Question Bank to give you a more
comprehensive application of the topics covered in the course pages.
You were also expected to carry out academic research work to give a wider knowledge and
understanding of the subjects covered in these course pages.
In the next session, we will continue with looking at the accounting system and internal
controls.
Further reading
ICAEW, (2016) Assurance, Study Manual, 10th Edn, Exeter: Wheatons
Recommended reading
Eilifsen, A., Messier, W., Glover, S. and Prawitt, D. (2006) Auditing and Assurance Services,
International Edition, Berkshire: McGraw-Hill Higher Education
Millichamp, A., Taylor, J. (2012) Auditing, 10th Edn, Hampshire: Cengage learning EMEA
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