Question

a)      Use a simple diagram to illustrate the processes for the expenditure cycle (process flow diagram)   

b)      For each process

i)                   State the objective of the process   

ii)                  Identify the risks ie what may go wrong, in each process

iii)                Outline the controls which can mitigate such risks

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Answer 1

Answer (A)

        Revenue cycle – Revenue cycle is break up into below four steps

1.      Receive Sale Order from customer

2.      Shipping to customer

3.      Billing to customer

4.      Cash Collection from Customer

Ans (B) -