Billing and Credit Memo Process Review Audit Report

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This sample audit report focuses on the customer billing and credit processes for invoices and credit memos.

The scope of this review included: evaluate the effectiveness and efficiency of the processes, systems and related internal controls; assess existing policies and procedures and determine whether they are being followed; compare company practices to leading practices; and identify opportunities for improvements.

The following key observations were noted during the review:

  • The billing supervisor’s position no longer exists in the current organization.
  • The company lacks resources in the billing department to independently review all invoices prior to submission.
  • A lack of awareness to the previously performed control procedures existed after the reorganization.
  • The reorganization within the organization removed the billing supervisor’s position and changed the role of the revenue supervisor and accountant.
  • The organization has undertaken steps to automate the billing process, leading to discrepancies with the nonautomated, manual processes described in the Sarbanes-Oxley documentation.

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