Amber jack Flashcards
Credit limits set by the receivables clerk:
not sufficiently senior to set credit limit.
Too high/Too low.
Irrecoverable/Loss of revenure
Credit limit should set by a senior member .
limits should be regularly reviewed-by a responsible official.
Customer master file data net reviewed.
Unauthorized changes ->will not identify on a timely basis
Receivables ledger clerk->not senior enough to access master data files.
Increased risk of fraud.
Recievable ssledger clerk–>not acces ->master data file
senior employees can chave access
Exception report should be generated and reviewed by responsible official.
Credit controller in internal audit department:
No one to follow up receivables–>irrecoverable receivables–>loss of revenue
Reduced cash flows
no one to for monitoring ageing receivables.
Alternative member of finance department–>trained–>in credit control role
Assign responsibility–>monitor ageing receivables–>follow u overdue customers.
Not enough number of GDN-to -sales dep
the sales ordering team cannot monitor the progress of sales orders
Is the order received->fulfilled on a timely basis
Cant follow up on unfulfilled orders
Loss of customer goodwill, and revenue.
Sent a copy of GDN to the Sales ordering department
Once the GDN received –>match with the sales order
A regular review of unmatched order should be conducted
Additional temporary sales staff
May not be experienced, increased risk of errors and omission
Results in customer being under or over charged–>dissatisfied customers.
as the company is expanding,
Consider recruting and training more permenanet sales clerk
Not possible->temporary staff should be trained
Additional input check should be conducted on invoices.
Manual entering of discounts:
Results–<unauthorized>no authorization,
May forgot to provide discount/incorrect level of discount-invoice being overstated
Loss of revenue/customer goodwill</unauthorized>
invoice system->amend->from manual entering sales disocunt-*>automatic
Invoice system-should confirm–>orders were placed–>during discount weekend.
So the invoice contain automatically reduced price
Customer statement is not generating and sent out:
Any errors or disputed invoices–>not being quickly identified->resolved
Cash flow pblms
Produce monthly customer statement for all customers and sent them out promptly.
Reconciliation of receivable ledger on end od April only
if not monthly,\mrisk of errors willnot spotted promptly
Reconciled on a monthly basis-follow up errors
Reconciliation should be reviewed by a responsible official ->evidence their review by way of sign
