Extract
[...] In addition, the actions taken in the event of late payment must be gathered. The security of customer data should also be verified, in order to ensure that it is well available and treated in a protected manner. Finally, the procedures for refund and cancellation should be controlled to ensure that they were well justified and approved. For the internal control of 'finished goods inventory', stock entries and exits must be managed in accordance with the accuracy of the records that must correspond to the documentary reality. [...]
[...] Internal Control and Audit - Valda and Motoreo Companies Part 1 The 'Clients - Effects to Receive' circuit is essential to the accounts receivable management process. To ensure such functioning, it is necessary to judiciously separate the functions in order to guarantee that other financial transactions are also reliable and transparent. Unfortunately, certain national gaps in the influence cycle can make these errors or frauds much easier to commit for the employees of the opposing party. The process begins with the issuance of invoices by the billing service. [...]
[...] For the sales-client function, key objectives would include accurate and reliable sales, optimized billing and collection, low doubtful charges, improved customer relations, and compliance. Accurate sales would mean that all sales are correctly recorded to ensure financial transparency. Optimized billing and collection would be a reduction in the time needed to secure a company's liquidity. Low doubtful charges would mean that precise credit ratings of the client should be made to minimize the chances of non-payment. Improved customer relations should go hand in hand with re-engagement, and compliance would mean that all standards and agreements are respected. [...]
[...] Therefore, this specific function reduces task separation and there are risks of unverified errors or, worse, fraud. At the same time, external control, such as cross-checking, could offer increased reliability of recorded data. In addition, each week, the accountant transmits a table of payments to their direct supervisor, the financial manager. Using these data, the financial department manager decides which effects to discount, that is, to sell to the bank to obtain money and which effects to return for collection. [...]
[...] Similarly, the security of storage units must be ensured to ensure that only authorized personnel can access the finished products. Finally, in terms of obsolescence and detectability, the internal control procedure must ensure their existence in the manual and the correct maintenance of operations. Similarly, rotation has different risks, namely those of stock instability, at the due date, where products with low mobility are identified. By applying these internal control tests, it is possible to verify that the MOTOREO system operates effectively, minimizes errors and fraud, and contributes to optimizing the overall performance of the company. [...]
