Term
| Incomplete/inaccurate orders |
|
Definition
-Data entry edit controls
-Restrict access to master data |
|
|
Term
|
Definition
-Digital or written signatures
-Acknowledge and confirm |
|
|
Term
|
Definition
-Credit evaluation, approval and limits
-Prepare and review AR Aging
-Aggressively pursue past due accounts |
|
|
Term
| Stockouts or excess inventory |
|
Definition
-Perpetual inventory system
-Bar-code, RFID, automated handling
-Physical counts of inventory—reconcile
-Sales forecasts integrated with production |
|
|
Term
|
Definition
| -Best in class customer service (CRM, self-help websites, “customer comes first”) |
|
|
Term
| Pick wrong item or quantity |
|
Definition
-Bar-code, RFID, automated handling
-Reconcile packing list to sales order |
|
|
Term
|
Definition
-Reconcile docs: sales order, picking slips, packing slips
-Account for pre-numbered documents
-Data entry automation and edit checks
-Application control checks for duplicate orders |
|
|
Term
|
Definition
-Segregation of duties: bill, record, adjustments
-Reconcile invoice, sales order, picking tickets, shipping documents
-Account for pre-numbered documents |
|
|
Term
|
Definition
-Use software to create invoice based on sales order price and quantity shipped
-Restrict access to pricing data |
|
|
Term
|
Definition
-Data entry edit controls
-Integrate posting with ERP/AIS software
-Mail monthly statements to customers
-Reconcile AR Subsidiary Ledger to GL |
|
|
Term
| Inaccurate or invalid credit memos |
|
Definition
-Segregate approval to credit manager
-Application control requires evidence of return or specific authorization |
|
|
Term
|
Definition
-Segregation of Duties: cash and AR
-Reconcile bank account to GL—Independent person
-Eliminate cash handling: EFT, FEDI, lockboxes
-Immediately endorse checks
-Count cash and compare to point of sale or transaction report—Independent person
-Point of sale systems
-Daily deposits at bank |
|
|
Term
|
Definition
-Cash flow budgets and actuals
-Follow-up on past due AR
-Discounts for prompt payment
-EFT, FEDI, lockboxes, credit cards |
|
|
Term
| Invalid or inaccurate master data |
|
Definition
-Restrict access-Segregation of Master File changes and recording
-Data entry and processing controls
-Review all master file changes |
|
|
Term
| Unauthorized disclosure of sensitive information |
|
Definition
| -Chapters 7&8: encryption, access controls, authorization controls |
|
|
Term
| Loss of destruction of data |
|
Definition
| -Chapters 7&8: disaster recovery plan, offsite backups, insurance |
|
|
Term
|
Definition
-Hire competent people and train them
-Performance reports to identify non-conformance |
|
|
Term
|
Definition
Sales Order Entry
Shipping
Billing
Cash Collections |
|
|
