The following are routine procedures for the audit of revenue processes. For each procedure, state whether it is a test of controls or a substantive test of transactions, state which management assertion the procedure is designed to fulfill, and state the type of evidence used in the procedure.

a. Review minutes from meetings of the board of directors for evidence that accounts receivable have been factored-sold to a third party.

b. Gather a sample of sales invoices and ensure that a copy of the sales order and the shipping document has been attached.

c. Reconcile a sample of deposit slips to entries in the cash receipts journal.

d. Observe the incoming receivables processing area to ensure that checks are immediately separated from remittance advices.

e. Confirm accounts receivable with follow-up on exceptions.

f. Obtain an accounts receivable aging schedule and assess the likelihood of collection.

g. Review a sample of sales orders for evidence that they have received proper approval from the credit department.

h. Vouch those transactions that occur at year end and shortly after the year end and reconcile them to the general ledger.