This sample report summarizes an internal audit review of an organization's sales compensation process. It includes an executive summary, background statistics, benchmarking data and recommendations. The primary objective of this review is to understand and evaluate the company’s sales compensation plan and process for commission payments, focusing on internal controls, compensation plan measurements and metrics.
The following key observations were noted during the review:
Sales compensation can take in excess of six weeks to process from end of quarter to when commission checks are paid. This process is so time-consuming because of the complexity of the calculation.
The commissions calculation process is not adequately documented. As the current process is extremely complex, the company is at risk of losing valuable process knowledge if the financial analyst (the primary process owner) were to leave the company.
The sales compensation plan administration is very complex and administratively burdensome.