The main financial statement items involved in the sales and collection cycle are

Notes receivable, accounts receivable, sales expenses.

In modern business, it can be generally divided into two ways: cash sales and credit sales. Among them, credit sale is to use credit as collateral to delay payment. The general process of sales and collection mainly includes handling customer orders. In the audit, the corresponding sales order is used to approve the sale on credit. Credit sales must have the amount of credit sales approved by legal personnel after reviewing the customer's reputation, which involves the person in charge of approving credit sales and related documents.

Extended data:

Precautions:

Inquire about the personnel of the audited entity who participate in the business activities of the sales and collection process, generally including the employees and managers of the sales department, the warehousing department and the financial department.

Obtain and read the relevant business flow chart or internal control manual of the enterprise.

Observe the application of specific controls in the process of sales and collection, for example, observe whether and how warehouse personnel check the shipped goods according to the information on the sales list.

Check documents, such as sales orders, shipping documents, customer statements, etc.

Baidu Encyclopedia-Sales and Collection Business Cycle