STAGE 1: ORDER PLACED
Control Objectives Controls Test of Controls
To ensure goods/services are Conduct a credit check on all Inspect a sample of customer
supplied only to creditworthy new customers prior to accounts to ensure credit checks
customers accepting the order, by someone are performed before order is
outside the sales department accepted
Customers should be given a Inspect the customer’s accounts
credit limit and it should be within the system to ensure credit
reviewed regularly limit is in place
To ensure all orders are Orders should be completed on Test the numerical sequence of
processed and dispatched sequentially numbered order the orders
forms and GDNs generated from
same information
A copy of GDN should be sent
by the warehouse to the sales
department once order is
dispatched
Sales department should Review any unfulfilled orders and
regularly review order forms that enquire as to why they are
don’t match with the GDNs unfulfilled
To ensure correct items are Spot checks to performed after Match a sample of items to the
dispatched in terms of goods are packed and before GDN and order form
quantity, item and condition dispatch
Physically inspect a sample of the
goods packed
Review customer complaint forms
STAGE 2: DISPATCH OF GOODS
Control Objectives Controls Test of Controls
To ensure that goods are A copy of the GDN to be signed Inspect a sample of the GDNs to
dispatched to the correct by the customer on acceptance ensure they are signed by the
destination and retain customers and to retain them for
future disputes
Other copies with the sales
department, warehouse and
invoicing department
Control Objectives Controls Test of Controls
To ensure goods/services are Conduct a credit check on all Inspect a sample of customer
supplied only to creditworthy new customers prior to accounts to ensure credit checks
customers accepting the order, by someone are performed before order is
outside the sales department accepted
Customers should be given a Inspect the customer’s accounts
credit limit and it should be within the system to ensure credit
reviewed regularly limit is in place
To ensure all orders are Orders should be completed on Test the numerical sequence of
processed and dispatched sequentially numbered order the orders
forms and GDNs generated from
same information
A copy of GDN should be sent
by the warehouse to the sales
department once order is
dispatched
Sales department should Review any unfulfilled orders and
regularly review order forms that enquire as to why they are
don’t match with the GDNs unfulfilled
To ensure correct items are Spot checks to performed after Match a sample of items to the
dispatched in terms of goods are packed and before GDN and order form
quantity, item and condition dispatch
Physically inspect a sample of the
goods packed
Review customer complaint forms
STAGE 2: DISPATCH OF GOODS
Control Objectives Controls Test of Controls
To ensure that goods are A copy of the GDN to be signed Inspect a sample of the GDNs to
dispatched to the correct by the customer on acceptance ensure they are signed by the
destination and retain customers and to retain them for
future disputes
Other copies with the sales
department, warehouse and
invoicing department
