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

C. 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 record keeping delays?

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A revenue control and management policy establises proper conrol over all receipts and receivable and helps ensure sound financial management practices. Government adopts a revenue control and management policy over revenues as a component of their overall financial policies.

Revenue control policy

  • Segregation of duties such as initiation and authorizaton of transactions, execution of transaction, recording transactions, reconcilement and maintaining custody
  • Daily processing and timely deposit as receipt
  • timely reconcilation of applicable ledgers
  • Physical security procedures
  • Fraud reporting procedures
  • use of integrated receipt and accounting system whereever practical cost effective.
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