In this video, we are going to get our hands a little bit dirty and look at a transactional cycle and walk through how we would audit it. The video exposes you to how a transactional cycle actually works, and then discuss some of the audit procedures we would use to nail down our assessment of control risk.

For this video, we are going to use the sales cycle, which is typically comprised of the following accounts:

Sales, returns, bad debt and allowances, receivables, cash receipts, and commodity tax collection.