This sample report provides findings from a sales commissions review at a company.
The objective of this review was to obtain an understanding of the commissions processes; evaluate the adequacy and effectiveness of the associated internal controls; and to identify opportunities for process improvements. The scope included sales commissions payment process utilized for company’s financial year plan and detail testing of Q1 and Q2 financial year sales commissions. The following procedures were performed: interviewed key management and personnel responsible for the sales commissions process; reviewed relevant company policies and procedures; evaluated the effectiveness and efficiency of business processes against leading practices; benchmarked company commissions operations against selected other companies; and performed limited transaction testing of Q1 and Q2 financial year sales commissions payments. The commissions plan included plan administration and commissions process included integrity of bookings data; commissions department; and commission processing costs.