Reference no: EM132574343

A bar chart shows that when Henry is the AR Clerk and Frank is the Cash Receipts Clerk, Connie is the GL Accounting Clerk for $226,851 of current AR balances. However, there are $25,352 of current AR for which Henry acted as both AR Clerk and GL Accounting clerk. This shows that employee Henry occasionally acts in multiple roles on the same transaction.

Note 1: The dollar value of accounts receivable for which Henry acted as both AR clerk and Cash Receipts Clerk is $343.

Note 2: When Sam is the Cash Receipts clerk, the dollar value of accounts receivable for which Henry acted as both AR Clerk and GL Accounting clerk is $7,491.

Note 3: The total dollar volume of AR that was not approved is $13,726.

Note 1 and 2 above identified instances of ineffective operation of key controls in the revenue cycle.

Question 1: How would these identified control deficiencies affect the nature, timing, and extent of substantive procedures for the revenue cycle?