Audit Matrix Program – Revenue

S. Kohl

Description

Contributed September 4, 2002 by [e-mail] Audit Matrix Program – Revenue Test Area: Sales Risk Level Status L = Low E=Enterprise D = Done M = Medium S=Site N = Not Applicable H = High B=Business Unit S = Scoped Out Risk: H Control Objectives 1. Freight – Ensure freight is properly billed to customers. 2. Contracts – Ensure that customer contracts are properly setup, approved, invoiced, priced and executed 3. Pricing – Ensure that pricing is accurate, updated and monitored by management. 4. Gross Margin – Ensure that gross margin is monitored on all sales transactions and in alignment with the Global Hagemeyer Solution. 5. Sales Cut-Off – Ensure that all valid sales are shipped, recorded and properly billed. Test Test / Control Procedures Background Information Control Conclusion W/P Level (Procedures in Place, Reports Used, (Control Met or Status/Ref and Control Owners) Action Plans and Due Date) B A.) Freight 1. Review procedures for identifying customers who are required to pay freight charges and how customers are billed for freight charges. Note: Understand the coding structure and accounting codes that freight is charged to. Contributed September 4, 2002 by [e-mail] 2. Document procedures in place including exception reports for the monitoring of freight charge billings. 3. Evaluate extent and nature of any significant unbilled freight charges on a daily, weekly and monthly ...

Sujets

• management

Informations

• Publié par: Mushur
• Nombre de lectures: 24
• Langue: English

Extrait

Contributed September 4, 2002 by [e-mail]

Audit Matrix Program – Revenue

Test Area

: Sales

Risk

L = Low

M = Medium

H = High

Level

E=Enterprise

S=Site

B=Business Unit

Status

D = Done

N = Not Applicable

S = Scoped Out

Risk: H

Control Objectives

1.

Freight – Ensure freight is properly billed to customers.

2.

Contracts – Ensure that customer contracts are properly setup, approved, invoiced, priced and executed

3.

Pricing – Ensure that pricing is accurate, updated and monitored by management.

4.

Gross Margin – Ensure that gross margin is monitored on all sales transactions and in alignment with the Global Hagemeyer

Solution.

5.

Sales Cut-Off – Ensure that all valid sales are shipped, recorded and properly billed.

Test

Level

Test / Control Procedures

Background Information

(Procedures in Place, Reports Used,

and Control Owners)

Control Conclusion

(Control Met or

Action Plans and Due

Date)

W/P

Status/Ref

B

A.) Freight

1.

Review procedures for identifying

customers who are required to pay freight

charges and how customers are billed for

freight charges. Note: Understand the coding

structure and accounting codes that freight is

charged to.

Contributed September 4, 2002 by [e-mail]

2.

Document procedures in place including

exception reports for the monitoring of

freight charge billings.

3.

Evaluate extent and nature of any

significant unbilled freight charges on a

daily, weekly and monthly basis.

4.

Discuss with management freight

initiatives and determine if they are in

accordance with HNA standards.

5.

Discuss with management and Philip

Gerlach, progress the OpCo has made on

rebilling freight dollars and unbilled freight.

B

B.) Contracts -

1.

Document procedures for establishing

customer contracts. Note differences

between long and short term contracts.

2.

Determine responsible personnel who

have the ability to negotiate pricing, review

and approve customer contracts. Note all

concerns (risks) regarding our ability to meet

minimum contract requirements.

3.

Document and determine how often sales

contracts are monitored to ensure compliance

by both parties with respect to pricing and

sales terms.

4.

Ensure that there are written and signed

agreements for all customer contracts

including all long term and material

contracts, i.e. Are contracts signed off by

legal counsel.

Contributed September 4, 2002 by [e-mail]

B

C.) Customer Returns

See Customer Service Audit Matrix Program

B

D.) Pricing -

1.

Document procedures used by

management for determining and updating

customer pricing on general sales and

contracts. Include the use of pricing

matrices, price lists and pricing updates.

2.

Document the pricing strategy used by the

site and ensure alignment with GHS.

3.

Document procedures and approval

process in place for pricing overrides.

Include controls in place for mitigating

unapproved pricing overrides.

B

E.) Gross Margin -

1.

Document and ensure gross margin

reports are reviewed and exceptions are

resolved on a regular basis.

2.

Document controls in place for the

monitoring gross margins. Include the

tracking and review of negative gross

margins.

3.

Perform ACL analysis on the invoice

register to identify the gross margin

exception and determine if these items have

been properly accounted for.

B

F.) Sales Cut Off

1.

Document and review procedures in place

to ensure sales are recorded in the proper

period. Include the flow of sales from

recording, posting to accounts and

transaction codes used.

Contributed September 4, 2002 by [e-mail]

2.

Ensure procedures are in place to review

sales activity on a monthly basis.

3.

Document procedures in place for bill and

hold orders, billing of special and direct

shipments and consignment sales. Include

booking of bill and holds to the G/L, real

time/on line, batch mode, etc. Ensure

controls are in place for the accurate and

proper recording of bill and hold sales.

4.

Review and document exception reports

used by management to ensure that all sales

are recorded in the proper period.

G.) Service Revenue

1.

Document procedures in place for

tracking and recording service revenues

including projects and on site customer

locations. Note how and when changes are

booked, hours are tracked, customer service

dispute handling.

2.

Document and discuss with management

the controls in place to ensure that all service

revenue is properly recognized in the proper

period.

3.

Document procedures in place to identify

exceptions with respect to unrecorded

services and/or equipment rentals.

Contributed September 4, 2002 by [e-mail]

B

H.) Key Statistics/Values

1.

Obtain and document in table form, the

average number and total dollar value of

credit memos issued on a monthly basis, the

average number of invoices generated on a

monthly basis and the average number of

sales returns on a monthly basis.

B

I.) Other Procedures

1.

Review and document other procedures,

processes and controls related to the sales

process.

B

J.) Best Practices/Process Improvements

1.

Document best practices/process

improvements, i.e. process efficiencies

shared and/or identified related to the sales

process.