Icq - Revenue and Receivables

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Business performance reviews

What are the key performance indicators reviewed by management and how does management use them to monitor revenue, for example: -gross profit; trends on returns
-financial ratios
-sales volume
-sales by geographical location or taxing jurisdiction
-web site hits and conversion rates?

How does management compare sales with independently accumulated information, such as: -budgets; forecasts
-production volumes
-past performance indicators?

How does management monitor credit risk:
-aged analysis of accounts receivable
-number and value of accounts over credit limit
-number and value of orders rejected
-number and value of bad debts?

What is the extent of management's review of information such as: -new or lost customers
-customer volumes
-customer support queries
-billing or other complaints
-returned goods
-unusual sales transactions as to volume or price
-how is this related to recorded revenues and the provisions for returns, claims or warranties?

|Order Processing |Obj. | |What ensures that the price and amount of the sale are correct? |A | |What ensures all orders are recorded? |C | |What prevents duplicate recording of sales? |C | |What ensures that periodic updates for batch processing are appropriately executed? |CA | |What ensures that only appropriate users can enter sales orders and that duties are adequately segregated (e.g. between entering sales orders |R | |and recording delivery)? | | |How are sales terms and prices approved? |V | |What prevents or detects sales to fictitious customers? |V | |How are customers' credit limits controlled? |V |

|Distribution and Delivery |Obj. | |What ensures the correct goods are shipped and accurately recorded? |A | |What ensures that deliveries are recorded in the proper period? |A | |What ensures that sales are recorded in the proper period? |A | |What ensures that all work orders or shipments of goods are input for processing? |C | |What ensures that periodic updates for batch processing are appropriately executed? |CA | |What ensures the correct postings are made to cost of sales and/or inventory in the general ledger? |CAV | |What ensures that only appropriate users can enter delivery of goods and that duties are adequately segregated (e.g. between recording |R | |delivery and entering sales orders or cash receipting)?...
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