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1936 Carlotta Drive, Concord, CA 94519 (925) 682-8000

 Internal Auditor

You are here: Mt. Diablo Unified School District > Departments > Internal Auditor

Revenue Potential Analysis 

The basic purpose of preparing a revenue potential analysis is to compare actual gross income and profit to anticipated gross income and profit. This comparison will indicate whether any material shortages or overages exist. If material differences do exist, they can then be examined in detail. Once the cause is identified, corrective action can be taken, if applicable. This procedure is a very good internal control procedure and should be performed for all major fundraisers.

Most revenue transactions are recorded only when the deposit is made to the bank, not when the actual sale is made; therefore, a complete and detailed receipt system must be present to adequately account for these revenues. This practice, unfortunately, muddles the audit trail to some extent. It is the basis for many audit opinion exceptions and disclaimers. If an adequate receipt system is maintained and the accounting system is functioning correctly, the revenue potential analysis may assist the auditor. The worksheet may provide further evidence as to the fairness of various account balances and enables the auditor to express an opinion on the financial statements.

The Revenue Potential Test pdf worksheet can be used for most fundrasing activities conducted by the student body organization.