Billing and Credit Memo Process Review Audit Report

This sample audit report focuses on the customer billing and credit processes for invoices and credit memos.

The scope of this review included: evaluate the effectiveness and efficiency of the processes, systems and related internal controls; assess existing policies and procedures and determine whether they are being followed; compare company practices to leading practices; and identify opportunities for improvements.

The following key observations were noted during the review:

• The billing supervisor’s position no longer exists in the current organization.
• The company lacks resources in the billing department to independently review all invoices prior to submission.
• A lack of awareness to the previously performed control procedures existed after the reorganization.
• The reorganization within the organization removed the billing supervisor’s position and changed the role of the revenue supervisor and accountant.
• The organization has undertaken steps to automate the billing process, leading to discrepancies with the nonautomated, manual processes described in the Sarbanes-Oxley documentation.