Phase i Design and perform tests of controls and substantive tests of transactions for the sales and collection cycle Arens, Loebbecke; Auditing, &/E @2000 Prentice hall. IncArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc.  Phase II  Design and perform tests of controls and substantive tests of transactions for the sales and collection cycle