Internal Controls - Revenue

• Sale orders and outstanding receivables are compared to established credit limits before a new order is approved and processed

• Documents are generated for all deliveries, checked to physical prior to dispatch and sequentially controlled

• Adequate procedures are in place to ensure transactions are recorded in the correct accounting period (matching of revenues/ costs/ delivery notes/ dispatch notes).

• Cash receipts matched to customer accounts/invoices

• All persons individually authorised to post cash receipts or amendments to the sales ledger are not authorised to receive orders, despatch goods or initiate invoices

• A review is performed each month by a senior official of the aged debtors report (with particular emphasis on overdue balances), the status of customer accounts against credit limits, credit balances on the sales ledger, unallocated cash and debtor provisions (both specific and general)

• There are documented authority limits for staff regarding - acceptance of sales and sales orders, levels of discounting, setting credit limits, approval of terms and conditions and the use of legal advisers on sales contracts

• At least two staff at management level are involved in setting up new customer accounts

• Credit checks have been performed on all new customers, details logged and terms of reference agreed