Contributed September 4, 2002 by SKohl@hagemeyerna.

com

Audit Matrix Program – Revenue Cycle Review

Test Area: Invoicing

Risk Level Status

L = Low E=Enterprise D = Done
M = Medium S=Site N = Not Applicable
H = High B=Business Unit S = Scoped Out

Risk: H

Control Objectives:
1. Invoicing– Ensure procedures are in place for accuracy and completeness of the customer invoicing process
2. Reporting – Ensure that exception reports are reviewed for effective management of issue resolution
3. Summary Billing – Review accuracy of summary billing processes based on the standard operating procedures in place

Test Test / Control Procedures Background Information Control Conclusion W/P

Level (Procedures in Place, Reports (Control Met or Status/Ref
Used, and Control Owners) Action Plans and Due Date)
B A.) General Processing
1. Document and review procedures in place for
accuracy and completeness of the customer
invoicing process (automated and manual).
Include the use of prenumbered invoices, reports
used by management for processing exceptions
and procedures in place for effective review and
monitoring of the invoicing process.
 Contributed September 4, 2002 by SKohl@hagemeyerna.com

Test Test / Control Procedures Background Information Control Conclusion W/P

Level (Procedures in Place, Reports (Control Met or Status/Ref
Used, and Control Owners) Action Plans and Due Date)
2. Discuss and document controls in place for
mitigating invoice duplication, shipments not
billed and unprocessed invoicing. Include
exception reporting used by management, i.e.
shipped not billed and open sales order reports.

3. Document and review sale/invoice journal

reconciliations to the G/L. Include procedures in
place and management review.

4. Discuss and note differences related to the

invoicing process related to service revenue
streams.
5. Discuss and document controls in place for
capturing all sales for invoicing. Include
exception reports used by management and
controls in place to ensure invoicing is
accounted for in the proper period..
6. Discuss and document controls in place to
ensure invoice pricing and tax rates agree with
original sales quote/order.
B B.) Summary Billings
1. Review and document procedures in place for
the summary billings process. Include
arrangements and agreements with customers,
manual and/or automated processing, timeliness,
accuracy, deferred revenue and coding of
invoices to the G/L and market segments.
2. Discuss and document controls in place to ensure
summary billings are issued and accounted for in
the proper period.
 Contributed September 4, 2002 by SKohl@hagemeyerna.com

Test Test / Control Procedures Background Information Control Conclusion W/P

Level (Procedures in Place, Reports (Control Met or Status/Ref
Used, and Control Owners) Action Plans and Due Date)
3. Discuss and document controls in place to ensure
summary billing pricing agrees with original
sales quote/order.
B C.) Other Procedures
1. Review and document other procedures,
processes and controls related to the
invoicing process.
B D.) Best Practices/Process Improvements
1. Document best practices/ process
improvements, i.e. process efficiencies shared
and/or identified related to master data.