This sample audit report outlines a review of an organization's sales order cycle, including the quote-to-invoice process, contract operations and maintenance, the accuracy and integrity of data captured in the order management system, and the quote-to-invoice cycle time.
The objectives of this review are to evaluate the internal control environment and the effectiveness and efficiency of the sales order cycle; to review and evaluate the adequacy of existing policies and procedures within the sales order process; to benchmark the company's sales order process with "best internal control policies" and "best practices" information; and to identify opportunities for improvement.
The following key observations were noted during the review:
- Discount information is not tracked on the system and is therefore not available for management’s analysis.
- Discount authorization documentation is incomplete or missing.
- Contracts and agreements are not consistently submitted to contract operations for review.
- Tool configuration information is not readily available to regional marketing and sales personnel, which increases the cycle time in the sales order process.
- Sales quotes do not consistently have complete tool configuration information, resulting in incomplete purchase orders from customers.