Our Vendor Rebates Audit Work Program is designed to help organizations ensure the accuracy, compliance and efficiency of their vendor rebate processes. Through a structured framework for auditing rebate receivables, this tool assists in verifying proper documentation, accurate calculations in line with vendor contracts and the adequacy of financial reserves. It empowers businesses to identify discrepancies, enhance internal controls and optimize their financial arrangements, ultimately driving better decision-making and minimizing risks associated with rebate mismanagement.

This audit work program includes two samples that cater to different aspects of vendor rebate management. Sample 1 focuses on reviewing supporting documentation, understanding accounting methodologies and assessing compliance with vendor contracts while emphasizing internal control evaluations. Sample 2 delves deeper into operational workflows, including rebate setup, processing, forecasting and financial reporting, offering insights into ensuring proper segregation of duties and adherence to accounting standards. Together, these samples provide a robust guide for organizations seeking to refine their vendor rebate practices.

Audit steps include:

• Document the methodology behind the inventory adjustments and assumptions used when booking inventory adjustments.
• Test the adequacy of the general reserve.
• Ask the appropriate level of management to determine whether there are adequate internal controls over the recording of vendor rebates.
• Inquire with direct and indirect purchasing on the methodology, tools and processes utilized to forecast direct and indirect supplier rebates by supplier, brand and BU.