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.