| ID: 10.004 |
| Test field: 10 – Sales revenue |
| Name: Analysis of cancellations / credit notes |
| Problem: Reversals or credit notes close to the balance sheet date can give indications of balance sheet embellishment or even balance sheet manipulation. oktant supports the identification of postings that could represent reversals or credit notes. The focus is not on the posting text, but on the examination of debit postings to revenue accounts. |
| Description: This audit action /analysis looks at debit entries on revenue accounts in a selected period around the key date. When selecting this audit action, the following parameters are to be determined: |
| Combination with audit procedures: The analysis of reversal postings can be classified in the area of data analyses within the scope of the audit of the internal control system (ICS). A selection of possible audit procedures reflects a selection of the controls presented in IDW PH 9.330.3, which octant supplements with practical audit procedures. In this context, for example, the analysis “authorisation of bookings” can be used to check which users have recorded bookings in the system. |
| Savings potential for the main audit: As a dual purpose test to gain audit assurance, these audit procedures can also be used as a single case audit procedure. Thus, a reduction of audit procedures during the main audit can be achieved. |
| Additional explanation: On the base of this information, the auditor can pick out problem cases directly, regularly and on the basis of reliable information with the company through a continuous auditing approach and bring about their clarification already during the year. In this way, the auditor guarantees a high audit quality. |
