Distributor Sales Review Audit Report

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Screenshot of the first page of Distributor Sales Review

This audit report focuses the distribution sales process, including: current distributor contracts and compliance with established parameters, credit memo data over a six-month period, and internal processes for validating distributors' credit memo claims. Objectives include: evaluate internal control effectiveness/efficiency, identify areas for improvements, and provide analysis scorecard of the company’s practices against “best practices”.

The following are key observations noted during the review:

  • Inventory validation counts on company inventory in distributors’ warehouses are not performed on a regular basis.
  • Distributor audits have been performed in the past, but are not done on a consistent basis.
  • Invalid ship-and-debit credits are being issued for invalid claims by distributors.

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