CPA Auditing and Attestation (AUD)
Certified Public Accountant Auditing and Attestation examination.
Practical Applications
Auditing Revenue Cycles
Revenue Cycle Focus
The revenue cycle includes sales, receivables, and cash receipts. Auditors examine this area closely due to its risk of misstatement or fraud.
Procedures
- Test controls over order processing and billing.
- Confirm accounts receivable with customers.
- Analyze trends in sales and collections.
Real-World Application
Accurate revenue reporting is key for stakeholders, and audit procedures help detect errors or intentional misstatements.
Examples
An auditor confirms outstanding invoices with major customers.
A CPA reviews sales cut-off procedures at year-end.