Lesson: Revenue Cycle

In this lesson, Nick Palazzolo discusses the revenue cycle, which encompasses accounts receivable and sales. He elaborates on the components of the cycle, as well as management assertions related to account balances, transactions, and presentation and disclosure. The lesson delves into how to test for completeness, cutoff, valuation, allocation, and accuracy, existence and occurrence, and understandability and classification within the revenue cycle. Various auditing techniques and document examinations are explained, such as tracing shipping documents, comparing sales invoices and authorized price lists, and ensuring proper revenue account classification.