Page 85 - Audit Day 3 - Class Slides
P. 85
REVENUE AND RECEIPTS CYCLE
RISKS WITH SALES AUTHORISATIONS
• Sales may be made to customers who are not
creditworthy i.e. will not pay, resulting in loss to
the company.
• Sales may be made to customers who are not
creditworthy i.e. will not take long to pay,
resulting in bad debts and liquidity challenges to
the company
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