 The sales staff have monthly sales targets and are able  Only senior authorized member of management

management should
to use their discretion in granting sales discounts up to a
maximum of 10%. They then record any discount
granted in the customer master data file. There is a risk
of fraud as junior members shouldn’t be allowed to
make changes in master data files. And without
reviewing and authorization of senior member the sales
staff could end up entering wrong balances in the
customers data files leading to loss of sales.
 The sales staff visit customer sites personally and orders
are completed using a two-part pre-printed order form.
One copy is left with the customer and the other copy is
retained by the sales person. The sales order number is
based on the sales person’s own identification (ID)
number. The sales orders are not sequentially numbered
so it would be difficult to trace the sales orders means
not being able to fulfill the orders on timely basis leading
to unsatisfied customers and loss of sales.
 The sales staff visit customer sites personally and orders
are completed using a two-part pre-printed order form.
One copy is left with the customer and the other copy is
retained by the sales person. There is no evidence that
the copy retained by the sales person is promptly sent
back to the relevant department which means there will
be unfulfilled orders leading to loss of customers
goodwill.
only be allowed to make changes in the master data files
and before entering customers data into their master
files, first it should be reviewed by senior member along
with corresponding documents to reduce the risk of
errors and after making adjustments if any needed then
authorized for being entered into the master files.
 The sales order should be sequentially numbered
instead of numbering on the sales staff identification
and senior sales member should review and check the
sales order sequence to the corresponding GDNs to
ensure there is none missing and the orders are
completed on timely basis.
 The order forms should consist of four parts or copies
out of which one should be sent to the warehouse
department and another one to the finance department,
so that the orders could be fulfilled and invoiced on
timely basis.
The review of the unfulfilled orders should be carried
out regularly so that they could be fulfill on timely basis.
 The sales discount should be authorized by the senior
member and should review the customer list to confirm
discount being offered to customer is a valid customer.
 Before accepting the order, the inventory system should
be checked by an authorized responsible person to
confirm the availability of required goods.

 The sales staff have monthly sales targets and are able
to use their discretion in granting sales discounts up to a
maximum of 10%. There is no evidence of sales discount
being authorized by senior member which could lead to
sales discount being offered to non-valid customers
resulting in the reduction of sales revenue and increased
expenses.

 The sales staff visit customer sites personally and orders

are completed using a two-part pre-printed order form.
There is no indication of first confirming the inventory
availability before accepting order. This could lead to
accepting orders for unavailable items, means there will
be delay in fulfilling the orders or the orders could
remain unfulfilled which would result in customers
unhappy and loss of future sales.
 Once the order is taken, the sales person emails the  One copy of the order form should be directly sent to
finance department and warehouse despatch team with the warehouse department as they had to dispatch the
the customer ID and the sales order details and from this goods and they should check the quantity required,
a pick list is generated. agreed price and other details on the order form and
Rather than sending a copy of sales order to finance and pick list should be generated carefully according to
warehouse department sales person is sharing details of original order form.
the order via email which is a poor control because  The credit controller should be given this task of chasing
while sending details through an email the order details the customers with outstanding balances because its
could be misstated which means the wrong orders could their duty to carry out this task.
be sent to customers resulting in loss of customer
goodwill.
 Standard credit terms for customers are 30 days and on
a monthly basis sales invoice which are over 90 days
outstanding are notified to the relevant sales person to
chase payment directly with the customer.
The sales person are not perfect for this task because
there task is to generate sales order so they will be
unlikely to chase the customers instead of achieving
their sales target. This could lead to increase in bad
debts damaging the cashflow.