AIS EXAM 3 ACTUAL EXAMINATION TEST
2026 COMPLETE QUESTIONS AND
SOLUTIONS GRADED A+
◉ what are the primary objectives of the revenue cycle
Answer: provide the right product
in the right place
at the right time for the right place
◉ what are the basic revenue cycle activities?
Answer: sales order entry
shipping
billing
cash collections
◉ what are general revenue cycle threats?
Answer: Inaccurate or invalid master data
Unauthorized disclosure of sensitive information
,Loss or destruction of master data
Poor performance
◉ what are general revenue cycle controls?
Answer: Data processing integrity controls
Restriction of access to master data
Review of all changes to master data
Access controls
Encryption
Backup and disaster recovery procedures
Managerial reports
◉ sales order entry processing steps
Answer: 1. take the customer order
2. approve customer credit
, 3. check inventory availability
4. respond to customer inquiries
◉ Threats for Sales Order Entry
Answer: 1. Incomplete/inaccurate orders
2. Invalid orders
3. Uncollectible accounts
4. Stockouts and excess inventory
5. Loss of customers
◉ controls for sales order entry
Answer: 1 a. Data entry edit controls
b. Restrict access to master data to
maintain accuracy
2 a. Signature to authorize sale
3 a. Credit limits checked and if sale exceeds
limit, specific authorization needed
4 a. Perpetual inventory system
b. RFID or bar code technology
c. Physical inventory counts
◉ shipping process
2026 COMPLETE QUESTIONS AND
SOLUTIONS GRADED A+
◉ what are the primary objectives of the revenue cycle
Answer: provide the right product
in the right place
at the right time for the right place
◉ what are the basic revenue cycle activities?
Answer: sales order entry
shipping
billing
cash collections
◉ what are general revenue cycle threats?
Answer: Inaccurate or invalid master data
Unauthorized disclosure of sensitive information
,Loss or destruction of master data
Poor performance
◉ what are general revenue cycle controls?
Answer: Data processing integrity controls
Restriction of access to master data
Review of all changes to master data
Access controls
Encryption
Backup and disaster recovery procedures
Managerial reports
◉ sales order entry processing steps
Answer: 1. take the customer order
2. approve customer credit
, 3. check inventory availability
4. respond to customer inquiries
◉ Threats for Sales Order Entry
Answer: 1. Incomplete/inaccurate orders
2. Invalid orders
3. Uncollectible accounts
4. Stockouts and excess inventory
5. Loss of customers
◉ controls for sales order entry
Answer: 1 a. Data entry edit controls
b. Restrict access to master data to
maintain accuracy
2 a. Signature to authorize sale
3 a. Credit limits checked and if sale exceeds
limit, specific authorization needed
4 a. Perpetual inventory system
b. RFID or bar code technology
c. Physical inventory counts
◉ shipping process
