This report provides findings from a company’s rebate process review. The reviewed processes include the distributor group rebate process, the buyer group rebate process, and the rebate accounting process and general ledger.
The purpose of the review was to identify potential control strengths and weaknesses within this process, test the controls specifically related to the distributor group rebate process, and provide recommendations that could assist in mitigating rebate-specific business risks. The overall goal focused on improving the control environment. This report provides management with information about the condition of risks and internal controls at one point in time.
An understanding of the existing processes and controls in place was obtained through discussions with personnel within the accounting, pricing and rebates departments. After obtaining an understanding of the procedures and related controls, process maps were developed and related control points were identified. The control points were tested and observations and recommendations were provided in this report to management.