In this audit report, internal audit conducted a review of the sales order processing cycle with the objective of evaluating the overall function for adequate controls and operational effectiveness. Specific areas of focus include quote-to-invoice process, contract operations/maintenance, accuracy and integrity of data captured in the order management system, and the quote-to-invoice cycle time.
Key observations noted from this review include:
- Discounts are currently not being tracked on an overall basis. This lack of discount information hinders management’s ability to create and maintain effective pricing strategies.
- Discount authorization documentation is incomplete or missing. Potential unauthorized discounts may be given to customers, which results in lost revenue and undermines the company’s overall pricing strategy.
- Contracts and agreements are not consistently submitted to contract operations for review.
Policies & Procedures
Order Management Policy
Sales Order Cycle Review Audit Report