Distributor Sales Review Audit Report

screen shot of first page of Distributor Sales Review Audit

ReportThis audit report focuses the distribution sales process,
including: current distributor contracts and compliance with
established parameters, credit memo data over a six-month
period, and internal processes for validating distributors' credit
memo claims. Objectives include: evaluate internal control
effectiveness/efficiency, identify areas for improvements, and
provide analysis scorecard of the company’s practices against
“best practices”.

The following are key observations noted during the review:

Inventory validation counts on company inventory in
distributors’ warehouses are not performed on a regular basis.
Distributor audits have been performed in the past, but are not
done on a consistent basis.
Invalid ship-and-debit credits are being issued for invalid claims
by distributors.