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Why is it important for companies to analyze revenue and accounts receivable? How can these areas...

Why is it important for companies to analyze revenue and accounts receivable? How can these areas lend themselves to fraud when left with lack of segregation of duties, weak controls and recordkeeping delays?

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It is very much important to match the revenue with the accounts receivable. This is because your revenue stands at 100 and the accounts receivable will be 100 now and it will be in gradually decreasing state. Even if the revenue increased the accounts receivable will be decreased gradually because if bad debts. It is not how much revenue you earned but it is how much you have collected is the one which is most important.

Not only bad debts there may be misappropriation of money received by the employees and they won't record the receipt of such money they will only collect and mislead such amount.

Internal controls will matter a lot in this type of situations, segregation of duties among the employees will reduce such type of misappropriation of money. So placing effective internal controls in place will be very important.

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