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.