Discover how this Incentive Compensation Audit Work Program can transform your organization’s approach to incentive management, offering a powerful framework to ensure that compensation plans are both efficient and compliant. With its clear structure, actionable steps, and focus on best practices, this tool helps you confidently assess internal controls, enhance transparency and drive performance, all while minimizing risks and maximizing value.

This document includes three samples. Sample 1 provides a road map for evaluating compliance with corporate policies, benchmarking against industry standards, and analyzing commission and bonus payments for accuracy and authorization. Sample 2 builds on these foundations, guiding users through detailed project planning, process documentation and rigorous transaction testing to ensure that incentive compensation processes are not only robust but also aligned with organizational goals.

Work steps in this audit program include:

• Evaluate compliance with corporate policies and procedures.
• Establish an incentive compensation expense, accrual, forecast and budgeting process.
• Review known best practices for initial benchmarking in the focus area.
• Understand how targets and quotas are established for each sales organization and individual.