Chapter 14: Audit of the Sales and
Collection Cycle: Tests of Controls
Typical Transactions in the Sales and
Collection Cycle
Five major classes of Transactions:
• Sales
• Cash receipts
• Sales returns and allowances
• The write-off of uncollectible accounts
• Bad-debt expense
Sales Cycle-2
An Overview of Functions, Documents, and
Accounting Systems
• Order Entry Department
– The starting point
Customer
Order
Prepare Sales
Order
Sales order 1
Customer
2
3
Credit
Department
A
Sales Cycle-3
Okra Development Corp.
Copy
Purchase Order 6-3378
8924 Bailey Road
Salem, OR 92117
Date:
Ship By:
Terms:
To:
Faragut Sales, Inc.
3812 Briar Drive
Salem, OR 92115
Quantity
Number
10
Model 317
August 5, 201X
September 12, 201X
2/10, n/30
FOB Shipping Point
Ship to:
Okra Development Corp.
8924 Bailey Road,
Salem, OR 92117
Description
Roller Bearing for
Price
Amount
48.00
480.00
Model 3118 Ripper
Purchase order number must appear
on all shipments and invoices
Ordered By
Margaret Spangler
Sales Cycle-4
64412
Sales Order
To:
Copy
Okra Development Corp.
8924 Bailey Road
Salem, OR 92117
Ship by September 12, 201X
Terms: 2/10, n/30
FOB Shipping Point
Faragut Sales, Inc.
Ship to Okra Development
8924 Bailey Road, OR
Credit Approval
C.H.
Goods Counted
M.K.
Customer Order Number 6-3378
Quantity
Number
Description
10
Model 317
Roller Bearing
Amount
480.00
Date Shipped: 8/20/0X. Freight Bill #229-237441
Sales Cycle-5
• Shipping involves the Shipping Department
Order
Entry
Approved
Sales
Order
SO
Billing and
A/R
BL
BL
BL
Prepare Multi-Part
Bill of Lading
BL
N
Customer
Common
Carrier
Sales Cycle-6
BILL OF LADING
Copy
Faragut Sales, Inc.
229-237441
3812 Briar Drive
Salem, OR 92115
Shipp to:
Destination:
Carrier:
August 20, 201X
Okra Development Corp.
8924 Bailey Road, Salem, OR 92117
Yellow Express Car Initial:
Car No.
Number of
Description of Articles,
Packages
Special Marks, and Exceptions
Weight
Rate
5
Roller Bearings, 2 each
28 lbs.
3
Faragut Sales Shipper,
Per Joe Chen
Class or
Agent Yellow Express Per Sue Jones
Sales Cycle-7
• Sales order & Bill of Lading goes to
• Billing/Accounts Receivable Department
Shipping
Department
SO
BL
SO
BL
INV
INV
N
INV
Prepare Sales
Invoice & Sales
Summary
INV
Cost Department
for Perpetual
Inventory
Sales Summary
General
Accounting
Customer
Sales Cycle-8
D8-9912
Faragut Sales, Inc
Copy
3812 Briar Drive, Salem, OR 92115
Sales Invoice
Sold to:
Shipped to:
Okra Development Corp.
8924 Bailey Road
Salem, OR 92117
8924 Bailey Road
Salem, OR 92117
Freight Bill No.
229-237441
FOB Shipping Point
Invoice Date
Date Shipped
Terms
Your Order No.
August 25, 201X
August 20, 201X
2/10, n/30
6-3378
Quantity
We are pleased to serve you
Price
Amount
10
Model 317
48.00
480.00
Pricing and Math
J.D.
Account Coding
S.A.L.
Sales Cycle-9
Page 327
SALES JOURNAL
Date
Sold to:
Invoice No.
Amount
August 25
Okra Development Corp.
D8-9912
480.00
Sales Cycle-10
• Cash Collection
• Receptionist/Mail Room Clerk
Customer
Invoice Copy
Cheque
Invoice
Cheque
List
Prepare List of
Cash Received
(2 copies)
List
Cashier
Control Copy to
General
Accounting
Sales Cycle-11
Okra Development Corp.
REMITTANCE ADVICE
Salem, Or.
Invoice No.
D8-9912
Cheque No.
867
Date
8-25-1X
Date
9-04-1X
Voucher
9-00018
Vendor No.
003270003
Gross Amount
Discount
480.00
9.60
Vendor Name
Faragut Sales, Inc.
Net Amount
470.40
Total Amount
470.40
Sales Cycle-12
15642
September 5, 201X
Cash Receipts Listing
Fountain City Warehousex,400.00
Adding Machine Tape
Charlotte Sawyers, Inc.
x,295.00
Brown, Inc.
1,200.00
Okra Development Corp.
x,470.40
Toil Incorporated
x,490.00
Harreleson Hardware
1,872.80
Barnaby Sales, Inc.
x,982.00
Hartfords
x,x92.00
x,120.00
x,x98.32
x,x23.66
x,842.33
x,988.11
3,130.40
5,802.20
J.T.Lockett
September 5, 201X
Preparer
Cash Summary
Cash Receipts Listing
5,802.20
Over-the-counter cash receipts
3,130.40
8,932.60
Sales Cycle-13
• Cash must be deposited in the Bank
• Cashier
Mail Clerk
List of Receipts
Invoice Copies
List of Receipts
Cheques
CR Summary
CR Summary
Cheques
Prepare Deposit
Slip & Cash
Receipts Summary
A/R to update
A/R Sub-Ledger
Deposit Slip
General
Accounting
Bank
Sales Cycle-14
First National Bank
Faragut Sales, Inc.
Deposit Slip
September 5, 201X
Currency
Cheques
3,130.40
400.00
295.00
1,200.00
470.00
490.00
1,872.80
982.00
92.00
$8,932.60
Teller
5
Sales Cycle-15
Page 112
CASH RECEIPTS JOURNAL
Date
Customer Name
Cash
Sales
Discount
August 25
Okra Development Corp.
470.40
9.60
Account Receivable
Credit
480.00
Sales Cycle-16
• The Accounts Receivable Sub-Ledger must be
updated
• A/R Department
Cashier
List of Receipts
CR Summary
Trial Balance
Post to the Customer
Account & Prepare
Trial Balance
Trial Balance
D
General Accounting for
comparison to the G/L
Sales Cycle-17
• The Role of General Accounting
A/R Dept.
Sales Summary
List of Receipts
Post to the General
Ledger
CR Summary
Mail Clerk
Cashier
Sales Cycle-18
Typical Documents and Records
• Sale is initiated with a
• What documents accompany the sale?
• Routine reports
– include a sales journal
– aged accounts receivable trial balance
– Anything else?
Sales Cycle-19
The Accounts of the Sales and Collection Cycle
Gross
sales
Cash in bank
Cash
Sales
Sales on
Account
Accounts receivable
Beginning
balance
Sales on
account
Ending
balance
Cash receipts
Cash discounts
taken
Sales returns
and allowances
Charge-off of
uncollectible
accounts
Allowance for
uncollectible accounts
Charge off of
uncollectible
accounts
Sales returns
and allowances
Beginning
balance
Bad debts
Ending
balance
Bad debts
Sales Cycle-20
Methods of Recording Transactions
• Manual recording
• Entered in batches
• Recorded one transaction at a time
Sales Cycle-21
Control Differences Between Batch and Online
Systems
Batch systems:
• Transactions readily
traced
Online systems:
• Transactions recorded
one at a time
• Groups of transactions
are totaled
• Document sequencing
is important
Sales Cycle-22
Control Differences For Error Detection and Correction
Batch systems:
• one erroneous
transaction
Online systems:
• Focus is on preventing
errors
• Error follow-up is
required
• Input edit check for
valid customer data and
reasonableness
Sales Cycle-23
Batch and Online Systems: Segregation of Duties
Batch systems:
Online systems:
• Separate
• In decentralized systems
• Reconciliation and error
follow-up
• Use passwords to separate
Sales Cycle-24
Risk Assessment and the Sales Cycle
Why do risk assessment?
Risk Type
Impact upon Sales and Collection Cycle
Client business risk
Increased client business risk could lead to greater risks of misstatement of
sales.
Audit risk
As audit risk decreases, the level of assurance required increases, and the
extent of testing required increases.
Inherent risk - overall
As inherent risk increases, the extent of testing required increases; inherent
risks associated with the handling of cash directly affect certain audit
assertions in sales (e.g. completeness).
Risk of material
misstatement - overall
Management biases due to bonus incentives or stated earnings forecasts
could increase the extent of testing.
Risk of fraud - overall
Poor fraud risk management could result in increased risk of fraud, with a
need to increase the extent of testing.
Identify significant risks
Revenue recognition is considered a significant risk unless the auditor has
evidence to the contrary; this means that controls over revenue recognition
need to be assessed and increased testing is required of assertions that
affect revenue recognition.
Remember that as risk increases
Sales Cycle-25
Effect of General Controls
• General controls
– Are pervasive and affect multiple transaction cycles
– Typical examples of general controls
Sales Cycle-26
• If general controls are good,
• If general controls are poor
Sales Cycle-27
Methodology for Designing Tests of Controls
for Sales
Understand general controls sales
Understand internal control
and evaluate design
effectiveness - sales
By assertion:
Assess planned control risk;
identify and assess risks of
material misstatement - sales
Evaluate
cost-benefit
of testing
controls
Design tests of
controls for sales to
meet transactionrelated audit
objectives
Audit procedures
Sample size
Items to select
Timing
Sales Cycle-28
Documentation of Internal Controls
• Internal controls need to be documented
• The auditor focuses on
• What type of controls can these be?
Sales Cycle-29
Key Controls for Sales
• Segregation of Duties
• Authorization
• Documents and Records
Sales Cycle-30
• Internal verification
• Prenumbered documents
• Monthly statements
Sales Cycle-31
• Application Controls
– These are computer internal controls
Sales Cycle-32
Tests of Internal Controls
• Once the key controls have been identified, the
auditor can decide
• Tests of internal controls will be devised for
Sales Cycle-33
Examples of Internal Control using the
Occurrence Assertion
• Manual Control
• Key control: credit is approved before shipment takes
place.
– The manual control?
• Possible test of control
Sales Cycle-34
Automated Batch
• Occurrence assertion
• Key control: Orders causing balances to exceed
credit limits are printed on an exception report
• Possible test of control:
Sales Cycle-35
Automated Online
• Occurrence assertion
• Key control: Orders causing balances to exceed
credit limits are held in a separate transaction file
• Possible test of control:
Sales Cycle-36
Interdependent
• Occurrence Assertion
• Key control: Orders causing balances to exceed the
credit limit are printed on an exception report and
must be approved by a credit manager
• Possible test of control:
Sales Cycle-37
Manual, Automated and Interdependent
Controls
From the previous examples, it can be seen that:
– Manual controls are controls performed entirely by people
– Automated controls (batch or online) are performed only by
computerized systems
– Interdependent controls rely upon computer processes
(automation) but a person must also be involved to fully
perform the control
Sales Cycle-38
Direction of Testing
Tracing
Vouching
Sales Cycle-39
• Tracing
– Goes from the start of the transaction to the posting
– Is this a test for overstatement or understatement of sales?
• Vouching
– Goes from the general ledger or sales journal back to the
original document
Sales Cycle-40
Typical Concerns for Tests of Sales
1. Recorded sales occurred
– Occurrence
– Auditor is concerned with following possible misstatements
• Recorded sale for which there was no shipment
• Sale recorded more than once
• Shipment made to non-existent customer
Sales Cycle-41
2. Existing sales transactions are recorded
–
Completeness assertion
–
Want to test for unbilled shipments
–
Are shipping documents complete?
3. Recorded Sales are accurately recorded
–
Measurement assertion
Sales Cycle-42
4. Recorded sales are properly classified
•
Ensure correct entry into the general ledger
5. Sales transactions are properly updated in the master file
and correctly summarized
•
Accuracy of the master file is essential
6. Sales are recorded on the correct dates
•
•
Sales must be billed as soon as shipment takes place
Remember all the tests can be dome with the same
sample of sales invoices and shipping documents
Sales Cycle-43
Typical Controls and Tests for Cash Receipts
Transaction-Related Audit Objective
Key Internal Control
General Tests of Controls
Quantitative/Dual-Purpose Test of Controls
Recorded cash receipts are for funds
actually received by the company
(occurrence)
Separation of duties between handling
cash and record keeping or data entry
Observe separation of duties.
Independent reconciliation or review of
bank accounts.
Observe independent reconciliation of
bank account.
Review the cash receipt journal, general ledger,
and accounts receivable master file or trial
balance for large and unusual amounts.
Trace from cash receipts listing to duplicate
deposit slip and bank statements
Separation of duties between handling
cash and record keeping.
Use of remittance advices or a prelisting
of cash.
Immediate endorsement of incoming
cheques.
Internal verification of the recording of
cash receipts.
Regular monthly statements to
customers.
Discussion with personnel and
observation.
As above.
Cash receipts are deposited and
recorded at the amount received
(accuracy).
Approval of cash discounts.
Regular reconciliation of bank accounts.
Comparison of batch totals with
duplicate deposit slips and computer
summary reports.
Examine remittance advices for proper
approval.
Review monthly bank reconciliations.
Examine file of batch totals for initials of
data control clerk; compare totals with
summary reports.
Examine remittance advices and sales invoices
to determine whether discounts allowed are
consistent with company policy.
Cash receipts are properly classified
(classification).
Use of adequate chart of accounts or
automatic posting to specified accounts.
Review chart of accounts and computerassigned posting accounts.
Examine documents supporting cash receipts
for proper classification.
Cash receipts are properly included in
the customer master file and are
correctly summarized (posting and
summarization).
Regular monthly statements to
customers.
Use of properly approved master file
change forms.
Comparison of customer master file or
aged accounts receivable trial balance
totals with general ledger balance.
Observe whether statements are mailed.
Foot journals, and trace postings to general
ledger and accounts receivable master file.
Cash receipts are recorded on correct
dates (timing).
Procedure requiring recording of cash
receipts on a daily basis.
Observe unrecorded cash at any point in
time.
Cash received is recorded in the cash
receipts journal (completeness).
Observe immediate endorsement of
incoming cheques.
Examine indication of internal
verification.
Observe whether monthly statements
are sent to customers.
Trace from remittances or prelisting to
duplicate bank deposit slip and cash receipts
journal.
Review reconciliation reports of credit card or
electronic funds transfer receipts.
Examine master file change forms for
proper authorization.
Examine documentation verifying that
comparison was complete,
Compare dates of deposits with dates in the
cash receipts journal.
Sales Cycle-44
Frequency of Testing of Internal Controls
• Is an auditor allowed to use the results of prior testing
in a current audit?
• In this case, which type of controls must be tested
annually?
• Which type of controls could potentially be tested
every three years?
Sales Cycle-45
Testing of Interdependent Controls
• The interdependent control has two parts:
– A function performed
– A function performed
• It is only possible to rely upon the automated function
if:
• Both parts of the control must be tested to enable
Sales Cycle-46
What if Control Testing Yielded Many Errors?
• The first step is to determine whether the errors or
exceptions
– were due to a particular circumstance
– or restricted to a particular time period
Sales Cycle-47
• If the errors are systemic
• If this alternative control achieves the same purpose
and is functioning correctly
• If no compensating control?
Sales Cycle-48
Material Error
• If there is no compensating control
• Want to quantify the extent of the error.
Sales Cycle-49
Results of Quantifying the Error
• If it turns out that the results of the weakness could
result in immaterial error
• If a material error could result
Sales Cycle-50
Performing the Audit Program
• The initial audit program is organized by audit
assertion
• In performing for maximum efficiency
• The use of automated working paper software
facilitates this process.
Sales Cycle-51
Computer-Assisted Audit Tests
• Where there are a large number of transactions
• E.g. In internal controls testing, the auditor could use
automated sampling routines
Sales Cycle-52
Suitability of Test Data
• Batch systems:
– Test data may be inappropriate
• Online systems
– Test data is useful
Sales Cycle-53
Suitability of Generalized Audit
Software
• Best suited for analytical review, tests of detail, or
dual-purpose tests, for example:
Sales Cycle-54
Problem 14-21, p. 490, 11th. Canadian Edition
The following errors or fraud and other irregularities are included in the accounting records of Joyce
Manufacturing Ltd.:
1. The credit limit for a new customer was entered as $20,000 rather than $2,000 in the
customer master file.
2. A material sale was unintentionally recorded for the second time on the last day of the year.
The sale had originally been recorded two days earlier.
3. Cash paid on accounts receivable was stolen by the mail clerk when the mail was opened.
4. Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the
bookkeeper who enter cash receipts and accounts receivable in the accounts receivable
system. He failed to enter the transactions.
5. A shipment to a customer was not billed because of the loss of the bill of lading.
6. Merchandise was shipped to a customer, but no bill of lading was prepared. Since billings are
prepared from bills of lading, the customer was not billed.
7. A sale to a retail customer was unintentionally classified as a commercial sale.
REQUIRED
1. Identify whether each misstatement is an error, a fraud, or other irregularity.
2. For each misstatement, state a control that should have prevented it from occurring on a
continuing basis.
3. For each misstatement, state an audit procedure that could uncover it.
Sales Cycle-55
Problem 12-22, page 403
YourTeam.com is an online retailer of college and professional sports team memorabilia, such as hats,
shirts, pennants, and other sports logo products. Consumers select the university, college, or
professional team from a pull-down menu on the company’s website. For each listed item, the website
provides a product description, picture, and price for all products sold online. Customers click on the
product number of the items they wish to purchase. YourTeam.com has established the following
internal controls for its online sales:
1. Only products shown on the website can be purchased online. Other company products not
shown on the website are unavailable for online sale.
2. The online sales system is linked to the perpetual inventory system that verifies quantities on
hand before processing the sale.
3. Before the sale is authorized, YourTeam.com obtains credit card authorization codes
electronically from the credit card agency.
4. Online sales are rejected if the customer’s shipping address does not match the credit card’s
billing address.
5. Before the sale is finalized, the online screen shows the product name, description, unit price,
and total sales price for the online transaction. Customers must click on the Accept or Reject
sales button to indicate approval or rejection of the online sale.
6. Once customers approve the online sale, the online sales system generates a Pending Sales
file, which is an online data file that is used by warehouse personnel to process shipments.
Online sales are not recorded in the sales journal until warehouse personnel enter the bill of
lading number and date of shipment into the Pending Sales data file.
Sales Cycle-56
REQUIRED:
a.
For each control, identify the transaction-related audit objective(s) being fulfilled if each
control is in effect.
b.
For each control, describe potential financial misstatements that could occur if the control
were not present.
c.
For each control, identify an important general control that would affect the quality of the
control.
d.
For each control, list a test of control to test its effectiveness.
Sales Cycle-57
Problem 12-27, page 405
The following are auditor judgments and audit sampling results for six populations. Assume large
population sizes.
1
2
3
4
5
6
EPER (in percentage)
2
0
3
1
1
8
TER (in percentage)
6
3
8
5
20
15
ARACR (in percentage)
5
5
10
5
10
10
100
100
60
100
20
60
2
0
1
4
1
8
Actual sample size
Actual number of exceptions
in the sample
REQUIRED
a. For each population, did the auditor select a smaller sample size than is indicated by using attribute
sampling tables for determining sample size? Evaluate, selecting either a larger or smaller size than
those determined in the tables.
b. Calculate SER and CUER for each population.
c. For which of the six populations should the sample results be considered unacceptable? What options
are available to the auditor?
d. Why is analysis of the exceptions necessary even when the populations are considered acceptable?
Sales Cycle-58
EXPECTED
POPULATION
DEVIATION RATE (IN
PERCENTAGE)
2
TOLERABLE DEVIATION RATE
(IN PERCENTAGE)
4
5
6
7
8
9 10 15
3
20
5 PERCENT RISK OF OVER RELIANCE (ARACR)
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
2.75
3.00
3.25
3.50
3.75
4.00
5.00
6.00
7.00
149
236
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
99
157
157
208
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
74
117
117
117
156
156
192
227
.
.
.
.
.
.
.
.
.
.
.
.
59
93
93
93
93
124
124
153
181
208
.
.
.
.
.
.
.
.
.
.
49
78
78
78
78
78
103
103
127
127
150
173
195
.
.
.
.
.
.
.
42
66
66
66
66
66
66
88
88
88
109
109
129
148
167
185
.
.
.
.
36
58
58
58
58
58
58
77
77
77
77
95
95
112
112
129
146
.
.
.
32
51
51
51
51
51
51
51
68
68
68
68
84
84
84
100
100
158
.
.
29
46
46
46
46
46
46
46
46
61
61
61
61
61
76
76
89
116
179
.
19
30
30
30
30
30
30
30
30
30
30
30
30
30
40
40
40
40
50
68
14
22
22
22
22
22
22
22
22
22
22
22
22
22
22
22
22
30
30
37
Sales Cycle-59
EPDR
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
2.75
3.00
3.25
3.50
3.75
4.00
4.50
5.00
5.50
6.00
7.00
7.50
8.00
8.50
2
3
4
5
6
7
8
9
10
15
20
10 PERCENT RISK OF OVER RELIANCE (ARACR)
114
194
194
265
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
76
129
129
129
176
221
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
57
96
96
96
96
132
132
166
198
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
45
77
77
77
77
77
105
105
132
132
158
209
.
.
.
.
.
.
.
.
.
.
.
.
.
38
64
64
64
64
64
64
88
88
88
110
132
132
153
194
.
.
.
.
.
.
.
.
.
.
32
55
55
55
55
55
55
55
75
75
75
94
94
113
113
131
149
218
.
.
.
.
.
.
.
28
48
48
48
48
48
48
48
48
65
65
65
65
82
82
98
98
130
160
.
.
.
.
.
.
25
42
42
42
42
42
42
42
42
42
58
58
58
58
73
73
73
87
115
142
182
.
.
.
.
22
38
38
38
38
38
38
38
38
38
38
52
52
52
52
52
65
65
78
103
116
199
.
.
.
15
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
34
34
34
45
52
52
60
68
11
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
25
25
25
25
32
Sales Cycle-60
Table 12-10
ACTUAL NUMBER OF DEVIATIONS FOUND
SAMPLE SIZE
0
25
30
35
40
45
50
55
60
65
70
75
80
90
100
125
150
200
11.3
9.5
8.2
7.2
6.4
5.8
5.3
4.9
4.5
4.2
3.9
3.7
3.3
3.0
2.4
2.0
1.5
1
17.6
14.9
12.9
11.3
10.1
9.1
8.3
7.7
7.1
6.6
6.2
5.8
5.2
4.7
3.7
3.1
2.3
2
3
4
5
6
7
8
9
5 PERCENT RISK OF OVER RELIANCE
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
19.5
.
.
.
.
.
.
.
16.9
.
.
.
.
.
.
14.9 18.3
.
.
.
.
.
13.3 16.3 19.2
.
.
.
.
12.1 14.8 17.4 19.9
.
.
.
.
11.0 13.5 15.9 18.1
.
.
.
10.1 12.4 14.6 16.7 18.8
.
.
9.4 11.5 13.5 15.5 17.4 19.3
.
8.7 10.7 12.6 14.4 16.2 18.0 19.7
8.2
7.7
6.8
6.2
4.9
4.1
3.1
10.0
9.4
8.4
7.6
6.1
5.1
3.8
11.8
11.1
9.9
8.9
7.2
6.0
4.5
13.5
12.7
11.3
10.2
8.2
6.9
5.2
15.2
14.3
12.7
11.5
9.3
7.7
5.8
16.9
15.8
14.1
12.7
10.3
8.6
6.5
18.4
17.3
15.5
14.0
11.3
9.4
7.1
20.0
18.8
16.8
15.2
12.2
10.2
7.7
10
.
.
.
.
.
.
.
.
.
.
.
.
18.1
16.4
13.2
11.0
8.3
Sales Cycle-61
Sample size
ACTUAL NUMBER OF DEVIATIONS FOUND
0
1
2
3
4
5
6
7
8
9
10
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
17.9
15.7
14.0
12.7
10.6
8.0
6.4
19.5
17.2
15.3
13.8
11.6
8.7
7.0
.
.
.
.
.
.
.
.
.
.
10 PERCENT RISK OF OVER RELIANCE
20
25
30
35
40
45
50
55
60
70
80
90
100
120
160
200
10.9
8.8
7.4
6.4
5.6
5.0
4.5
4.1
3.8
3.2
2.8
2.5
2.3
1.9
1.4
1.1
18.1
14.7
12.4
10.7
9.4
8.4
7.6
6.9
6.3
5.4
4.8
4.3
3.8
3.2
2.4
1.9
.
19.9
16.8
14.5
12.8
11.4
10.3
9.4
8.6
7.4
6.5
5.8
5.2
4.4
3.3
2.6
.
.
.
18.1
15.9
14.2
12.9
11.7
10.8
9.3
8.3
7.3
6.6
5.5
4.1
3.3
.
.
.
.
19.0
17.0
15.4
14.0
12.9
11.1
9.7
8.7
7.8
6.6
4.9
4.0
.
.
.
.
.
19.6
17.8
16.2
14.9
12.8
11.3
10.1
9.1
7.6
5.7
4.6
.
.
.
.
.
.
.
18.4
16.9
14.6
12.8
11.4
10.3
8.6
6.5
5.2
.
.
.
.
.
.
.
.
18.8
16.2
14.3
12.7
11.5
9.6
7.2
5.8
18.6
16.6
15.0
12.5
9.5
7.6
Sales Cycle-62