revenue receivables key controls

7/28/2019 Revenue Receivables Key Controls

http://slidepdf.com/reader/full/revenue-receivables-key-controls 1/9

Telecom/Cable Audit

Cycle Transaction Test Plan Date Tested Tested by Test Type Results

Revenue

and

Receivables

1. Select a sample of work

orders from billing system

that were completed during

the testing month period

(the sample should include

work orders from all service

offerings; i.e. video, HSD,

1.1 Examine truck roll work

orders to validate that each

contain a signature of the

customer and technician's

number.

Examination



Telecom/Cable Audit


Revenue

and

Receivables








1.2 Examine Billing System to validate that the

customer's subsequent billing record accurately

reflects the completed work order.

Examination



Telecom/Cable Audit


Revenue

and

Receivables








1.3 Examine work order entry and work order completion

dates to validate timely provisioning of the work order

Examination



Telecom/Cable Audit


Revenueand

Receivables

1. Select a sample of work orders from billing system






1.4 Verify through examination that for the Technicianswho completed the work orders that all work orders

assigned for that day are hard closed (entered into system

to start billing), reassigned, or marked for rescheduling on

the same day or next day.

Examination



Telecom/Cable Audit

Cycle Transaction Test # Executed Test Plan Test Date Tested By Test Type Results

Revenue

and

Receivables

2. Select a sample of

customer accounts

aged greater than 60

days from the A/R

aging report *

2.1 Examination

Test Plan

Determine through examination of the billing system

that the delinquency is being managed by the

collections department. Examine entries in the

billing system detailing customer contact and status.

Verify that the collections department is following

company policy in managing the



Telecom/Cable Audit

Cycle Transaction Test # Executed Test Plan Test Date Tested By Test Type

3.1 Examination

3.2

Examination

and Inquiry

Revenue

andReceivables

Examine evidence that a valid reason code was

applied to the adjustment/credit on a timely basisand it was not above the service reps limit.

To validate that all adjustments can only be posted

by the Support group review copies of

adjustment/credit reports maintained by the Support

group to validate that the adjustment was posted by

a Support group rep.

3.Obtain a sample of

adjustments/creditsapplied to customer

accounts *



Telecom/Cable Audit

Cycle Transaction Test # Executed Test Plan Test Date Tested By Test Type Results

4.1 Examination

4.2 Examination

4.3 Examination

4.4 Examination

4.5 Inquiry

Revenue

and

Receivables

If a build-out/construction project, validate that an

NPV analysis exists, appropriate approvals, and a

customer signature are contained in the supporting

backup details.

Examine truck roll work orders to validate that each

contain a signature of the customer and technician's

number.

Inquire that the customer was contacted after

installation to verify services and customer

satisfaction.

4. Select a sample of

closed commercial

work orders from

billing system (and

supporting details)

completed during the

audit period *Verify that the work order was processed using the

billing system.

Request screen print of sales management system (if

different from billing system) showing customer

information is current.



Telecom/Cable Audit


10.1 Examine support to validate that the

monthly bad debt calculation agrees with

bad debt reserve guidelines provided by

Corporate and discuss with the Controller

the nature and reasonableness of any

further adjustments made at the division

level.

Examination

10.2 Verify through examination that the

bad debt calculations agrees to what was

posted in GL system.

Examination

10.3 Examine evidence that the calculation

was reviewed and posted to the GL by the

Controller in a timely manner.Examination

Test Plan

Attachments:

Results

Revenue and

Receivables

10 Select a sample of 6

monthly bad debt reserve

calculations *

148563577.xls.ms_office



Telecom/Cable Audit


11.1 Verify through examination, evidence

that the calculations were verified and

posted by the General Accounting Manager

(GAM).

Examination

11.2 Examine evidence that the Staff

Accountant performs a monthly

reconciliation between the billing system

and the GL (monthly standardized A/R

spreadsheet) as part of the monthly closing

process. Examine evidence that theController reviews it for reasonableness

Examination

Test Plan

Attachments:

Results

11.Obtain a sample of

monthly deferred revenue

calculations from the

General Accounting

Manager

Revenue and

Receivables

148563577.xls.ms_office

revenue receivables key controls

Documents