Internal Audit Objective
In this report, our objective is maximizing company wealth by increase effectiveness, efficient and economy of scale. During this report, we would concentrate on the control and record of software licenses. Also, we would focus whether the staffs follow company policies and regulation. Lastly, we will try to find out potential fraud and error.
Company core problem
After investigation, we found that company has two major problems. It causes company suffer unnecessary losses. For company benefit, company should hold sales record properly and updated with authorization. However, I found that company has weakness on sales and invoicing systems.
From contact with customers, demo, issue invoice, record sales to write off bad debts are done by sales representative. Also, Olympian herald ltd bounce scheme is based on sales register record. But all the record are held and updated by sales representative, it could help three kind of possible fraud.
First, if sales representative try to increase their bounce, they could create un-existing customer and sales. Because of sales representatives are required to follow up unpaid invoices and have authority to write off bad debts, under such system sales representatives could create un-existing sales without anyone notice. By create many of un-existing client and sales, sales representatives will increase their sales volume. Under this weakness, company suffers loss on paying extra bounce to sales representatives.
Second, Because of sales representative are the only mechanism on control of bad debt written off procedure and payment follow up, high risk of embezzlement could be happen. It could happen in two ways; first they could receive clients¡¦ payment on behal ...