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Account Information System

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ACKNOWLEDGEMENT

The case study of PBL in session 1 is related to the revenue cycle in which consists of sales to cash collections. Revenue cycle is a recurring set of business activities and related information processing operations associated with providing good and services to customer and collecting cash in payment for those sales. The primary objective of revenue cycle is to provide the right product in the right place at the right time for the right price. There are four basic revenue cycle business activities that are sales order entry, shipping, billing and account receivables also cash collection. Sales order entry process entails three steps that are taking the customer’s order, checking and approving the customer credit and checking inventory control. The second basic activity in the revenue cycle is by filling the customer orders and shipping the desired merchandise. It is entail two step that is picking and packing the order also shipping the order. The third basic activity in the revenue cycle involves billing customers and updating the account receivables. The last step in revenue cycle is cash collections in which involve handling the customer remittance and depositing remittance in the bank. Basically, this case is about an audit process made to our client in term of its process of sales and cash receipts document as well as in shipping and billing system. Based on this case, we had made an audit process on the sales order entry, cash receipt, shipping and billing of the client transaction of business. We had discovered the weaknesses of its internal control system revealed from the client’s procedures on documenting of sales and cash receipt also omission from shipping and billing system.

PART I: SALES AND CASH RECEIPT SYSTEM

SALE DEPARMENT | Mail Clerk | Sales

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