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.