Describe the credit functions duties for monitoring customer payments and handling bad debts.

Visit Connect for additional student resources that will alow you to assess your unde concepts. understanding of chapte TIONS earned 10-1 Accounting standards require that revenue must be realized or realizable and before it can be recognized. Discuss what is meant by the terms realized or able and earned 0-1 Describe the credit function's duties for monitoring customer payments and handig bad debts. -6 10-3 When an entity does not adequately segregate duties, the possibility of cash being stolen before it is recorded is increased. If the auditor suspects that this type of defalcation is possible, what type of audit procedures can he or she use to test this possibility? The auditor needs to understand how selected inherent risk factors affect the trans- actions processed by the revenue process. Discuss the potential effect that industy- -7 10-4 related factors and misstatements detected in prior periods have on the inherent n assessment for the revenue process. In understanding the accounting system in the revenue process, t performs a walkthrough to gain knowledge of the system. What kno the auditor try to obtain about the accounting system? -8 10-5 the auditor typicaly 9 10-6 What are the two major controls for sales returns and allowances tran transactions