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Prepared By:
Reviewed By:
Professional standards require us to obtain an understanding of the flows of transactions sufficient to identify and
understand a) major classes of transactions in the entitys operations; b) how such transactions are initiated; c)
significant accounting records, supporting documents and accounts in the financial statements; and d) the accounting
and financial reporting process, from the initiation of significant transactions and other events to their inclusion in the
financial statements.
Related Accounts
Cash receipts typically have a significant effect on the following accounts (modify account names as appropriate and list
other accounts not pre-populated below):
Cash
Accounts receivable
Sales discounts
Performed By
(Job Title Only)
IT/Reliance on
electronic data?
Provide any other details that are necessary to understand the initiation, processing, recording and reporting of cash
receipts:
Ref.:
No
Walkthrough
Describe the walkthrough tests performed on the flow of transactions. In so doing determine that the walkthrough
encompasses the entire flow of initiating, authorizing, recording, processing and reporting individual transactions and,
to the extent necessary, related controls. Use original source documentation and information technology that the client
personnel typically would use in the flow of transactions:
Performance Considerations
Yes/No/
N/A
Initials &
Date
_______________________
b. Note any exceptions to the prescribed procedures and, to the extent necessary, controls
identified and the impact this has on the audit.
c. In instances where we have identified a significant risk and are required to assess control
risk, did the walkthrough procedures include an appropriate evaluation of the controls
sufficient to determine the effectiveness of the design of the controls and whether controls
have been implemented?
d. Did our inquiries of company personnel include follow-up questions about what company
personnel do when they encounter errors, the types of errors they have encountered, what
happened as a result of finding errors, and how the errors were corrected?
e. In instances where we identified significant changes in the flow of transactions did we
evaluate the nature of the change to determine whether to walkthrough transactions
processed both before and after the change?
Conclusion (Check box to confirm conclusion)
Our walkthrough procedures have confirmed our understanding of the cash receipts flow of transactions as
evidenced by our system documentation.