Question

Provide an example of threat in the revenue cycle that you've learned from your work or study. How to prevent?

Answer 1

example: Stock outs or excess inventory

Prevention:

1. Perpetual inventory control system
-Helps reduce unexpected stockouts/excess; must have accurate data for this to work

1. Perpetual inventory control system
-Helps reduce unexpected stockouts/excess; must have accurate data for this to work
2. Use of bar codes or RFID
-Helps #1 because it scans data automatically
3. Training
-If you can't have RFID, train managers to enter data correctly
4. Periodic physical counts of inventory
-Verifies the accuracy of recorded amounts
5. Sales forecasts and activity reports
-Helps predict inventory needs; accountants can provide reports to make changes to forecasts