Auditor Senior Manager Partner 2-183

Year End: December 31, 2024

Risk Questionnaire - Revenue / Trade Debtors

All Revenue / Trade Debtor risks identified

Risk Name What can go wrong Likelihood Monetary Combined Significant

to occur Impact Score risk

Inherent Risk
Completeness
Everything that should be recorded in the financial report has been included.

Mitigating Factor Response Comments Initials Date

Revenue is primarily earned from non cash sales.
Revenue is primarily earned from transactions that
are free of contras or offsets.
The volume of sales/services and/or the number of
customers/clients remain comparable between
periods.
Revenue is primarily free of related party
transactions.
Revenue recognition is not dependent upon
subjective or complex decisions i.e. stage of
completion.

Conclusion: Based on the answers above, conclude as to the level of inherent Suggested: Medium
risk that a material misstatement could occur. Audit assessment: Low
Comment: Please comment on the audit assessment.

__________________________
Engagement Forms - Audits
© Sama Audit Systems & Softwares Pvt Ltd
 Auditor Senior Manager Partner 2-183
Year End: December 31, 2024
Risk Questionnaire - Revenue / Trade Debtors

Existence
Everything that is recorded in the financial report exists at the appropriate date and should be included.

Mitigating Factor Response Comments Initials Date

No conditions exist that provide management with an
incentive to misstate revenue.
(e.g. bonuses based on results)
The volume of sales/services and/or the number of
customers/clients remain comparable between
periods.
The level of returned goods is consistent with prior
years and at a generally acceptable level.
The recording of revenue is completed on a timely
basis in relation to the delivery of goods/services.

Conclusion: Based on the answers above, conclude as to the level of inherent Suggested: Medium
risk that a material misstatement could occur. Audit assessment: Low
Comment: Please comment on the audit assessment.

Accuracy and Cutoff

Transactions and balances pertain or belong to the entity and have been recorded at the proper amount, allocated to the
proper period and have been properly classified in the financial report.

Mitigating Factor Response Comments Initials Date

Revenue accounts have been free of significant audit
adjustments in the past.
The rate at which products are sold or services are
provided is free of significant variation.
Revenue recorded is not dependent upon subjective
or complex decisions i.e. stage of completion.
Revenue is generally free of unusual and complex
transactions, particularly near year end.
The recording of revenue is completed on a timely
basis in relation to the delivery of goods/services.
Management has accurately estimated the level of
adjustments to revenue in prior periods.
Related party transactions are conducted on normal
terms in the ordinary course of business.

Conclusion: Based on the answers above, conclude as to the level of inherent Suggested: Medium
risk that a material misstatement could occur. Audit assessment: Low
Comment: Please comment on the audit assessment.

__________________________
Engagement Forms - Audits
© Sama Audit Systems & Softwares Pvt Ltd
 Auditor Senior Manager Partner 2-183
Year End: December 31, 2024
Risk Questionnaire - Revenue / Trade Debtors

Valuation
Trade Receivables are recorded in the financial report at the appropriate amount (value).

Mitigating Factor Response Comments Initials Date

The rate at which products are sold or services are
provided is free of significant variation.
Revenue is derived from a large number of sources.
Management has accurately estimated the levels of
impairment in the past.
The ageing of receivables remains comparable with
prior periods.
The collection pattern of receivables is comparable
with industry figures.
The entity’s clients/customers operate in industries
that are free of unfavourable business conditions.

Conclusion: Based on the answers above, conclude as to the level of inherent Suggested: Medium
risk that a material misstatement could occur. Audit assessment: Low
Comment: Please comment on the audit assessment.

__________________________
Engagement Forms - Audits
© Sama Audit Systems & Softwares Pvt Ltd
 Auditor Senior Manager Partner 2-183
Year End: December 31, 2024
Risk Questionnaire - Revenue / Trade Debtors

Control Risk
Completeness
Everything that should be recorded in the financial report has been included.

Control Procedures Identified CRPT Tested Ref Comments Initials Date

Risk Factor – Goods / services supplied are not invoiced
Invoices are prepared from appropriate supporting
documentation.
Segregation exists between the delivery of
goods/services and the raising of invoices.
Authorisation exists over non routine revenue such as
received from employees or from the sale of non-
current assets or excess stock.
There is regular analysis of gross profit ratios and/or
sales trends by management.
Management reviews budgeted to actual sales figures
with an investigation of unusual or material variances.
Risk Factor – Revenue is invoiced but not recorded in the general ledger
The general ledger is linked directly to the revenue
information system.
Reconciliations are regularly performed between the
revenue information system and the general ledger.
Invoices are sequentially numbered and missing
numbers are investigated.
Segregation exists between the raising of invoices
and the receivables.
Risk Factor – Receipts are not deposited or recorded correctly

__________________________
Engagement Forms - Audits
© Sama Audit Systems & Softwares Pvt Ltd
 Auditor Senior Manager Partner 2-183
Year End: December 31, 2024
Risk Questionnaire - Revenue / Trade Debtors

There is a regular review of receivables aging with a

follow up of overdue accounts by management.
Bank reconciliations are prepared and independently
signed as reviewed on a regular basis.
Risk Factor – Reversals of revenue do not represent genuine transactions
Authorisation is required to raise credit notes.
Independent review is conducted of credit notes
raised.
Management reviews reversals of revenue with an
investigation of unusual or material amounts.

Conclusion: Based on the answers above, conclude as to the level of Suggested: Medium
control risk that a material misstatement could occur. Audit assessment:
Comment: Please comment on the audit assessment.

__________________________
Engagement Forms - Audits
© Sama Audit Systems & Softwares Pvt Ltd
 Auditor Senior Manager Partner 2-183
Year End: December 31, 2024
Risk Questionnaire - Revenue / Trade Debtors

Existence
Everything that is recorded in the financial report exists at the appropriate date and should be included.

Control Procedures Identified CRPT Tested Ref Comments Initials Date

Risk Factor – Revenue does not represent an exchange with the entity
A regular review is made over the customer list.
Management investigates overdue accounts.
Independent written approval is required for any credit
given to customers.
Creation of new customers can only be done by the
appropriate individual’s i.e. sales manager (access
controls).
Regular analysis of gross profit ratios and or sales
trends by management.
Management reviews budget to actual sales figures
with an investigation of unusual or material variances.
Risk Factor – Revenue is duplicated
Appropriate segregation of duties between the raising
of the invoice, delivery of goods/services and the
receipt of monies.

Conclusion: Based on the answers above, conclude as to the level of Suggested: Medium
control risk that a material misstatement could occur. Audit assessment:
Comment: Please comment on the audit assessment.

__________________________
Engagement Forms - Audits
© Sama Audit Systems & Softwares Pvt Ltd
 Auditor Senior Manager Partner 2-183
Year End: December 31, 2024
Risk Questionnaire - Revenue / Trade Debtors

Accuracy and Cutoff

Transactions and balances pertain or belong to the entity and have been recorded at the proper amount, allocated to the proper period and have been properly classified in the financial
report.

Control Procedures Identified CRPT Tested Ref Comments Initials Date

Risk Factor - Invoices are incorrectly prepared
Quantities, pricing and extensions checked for
accuracy by a client staff member.
Adequate controls over price lists and customer
master file information (access control).
Appropriate authorisation is provided for discounts.
Access to customer files is restricted.
Regular analysis of gross profit ratios and or sales
trends by management.
Management reviews budget to actual sales figures
with an investigation of unusual or material variances.

Conclusion: Based on the answers above, conclude as to the level of Suggested: Medium
control risk that a material misstatement could occur. Audit assessment:
Comment: Please comment on the audit assessment.

__________________________
Engagement Forms - Audits
© Sama Audit Systems & Softwares Pvt Ltd
 Auditor Senior Manager Partner 2-183
Year End: December 31, 2024
Risk Questionnaire - Revenue / Trade Debtors

Valuation
Trade Receivables are recorded in the financial report at the appropriate amount (value).

Control Procedures Identified CRPT Tested Ref Comments Initials Date

Risk Factor – Trade receivables are overstated
Trade receivables are regularly reviewed for
impairment.
Management reviews adjustments for impairment of
trade receivables with an investigation of unusual or
material variances.

Conclusion: Based on the answers above, conclude as to the level of Suggested: Medium
control risk that a material misstatement could occur. Audit assessment:
Comment: Please comment on the audit assessment.

AUDIT CONCLUSIONS

Auditor:
Senior:
Manager:
Partner:

__________________________
Engagement Forms - Audits
© Sama Audit Systems & Softwares Pvt Ltd