Looking for guidance how to interpret data and using analytics for the revenue cycle.

Lehigh is a wholesale general supply company that ships to business customers throughout Northeast Pennsylvania, New York state, and Southern Connecticut. Lehigh has developed a competitive edge by offering a wide variety of quality products at competitive prices. The company's products range from paint to watering cans. Lehigh is a publicly owned company, whose board of directors has retained your firm to conduct the annual audit. You are the in-charge auditor who is currently examining Lehighs revenue and expenditures procedures and related accounts. Lehigh's main offices are in its Allentown, PA warehouse. The following describes your client's system configuration and business procedures. System Overview and Background Lehigh's information system is a recently purchased application that runs on a client- server network configuration. James Walker, a systems designer in Lehigh's IT department, played a central role in implementing and modifying the system to meet Lehigh's specific needs. Because of Walker's familiarity with the system, he was asked by top management to temporarily oversee the initial running of the new system to ensure a smooth transition from the old legacy system. After several months, James Walker was offered a promotion to Warehouse Manager and given permanent responsibility for product purchasing. Sales and Cash Receipts Procedures The flowchart in Figure 1 and the record layout in Figure 2 (see the related PowerPoint file for figures) illustrate Lehigh's sales and cash receipts procedures. Sales Department Customer orders are received by mail or fax in the sales department. One of the sales staff accesses the customer record and reviews the available credit before creating a Sales Invoice record. For customers with insufficient available credit, the clerk submits the order to the credit manager for approval. If granted, the credit manager verbally authorizes the clerk to increase the customer's line of credit accordingly. For approved sales, a record is added to the Sales Invoice file. The system automatically assigns an Invoice Number, which is the primary key for the record. The clerk manually enters the remainder of the order data. Warehouse Based on input from the sales invoice, the warehouse terminal automatically prints a stock release document, which the warehouse staff uses for picking the goods. The goods are sent to the Shipping Department along with the stock release document. Once the goods have left the warehouse, the clerk confirms to the system the quantity sold and it automatically updates the Quantity on Hand field in the respective inventory record. Shipping Department The shipping department receives the goods, prepares them for shipment, selects a carrier and prepares the packing slip and bill of lading (BOL). Once the goods are shipped, the clerk adds a record of the shipment to the Shipping Log file. a Billing At the end of the day the system automatically searches the Sales Invoice and Shipping Log files for items shipped and prepares a hard copy customer invoice, which is mailed to the customer the following morning. The current date is then placed in the Due Date field of the Sales Invoice file. Cash Receipts Mary, the cash receipts clerk, receives the customer checks and remittance advises directly from the customer. She records this transaction by entering the Invoice Number (taken from the remittance advice) into the system. The system automatically creates a Cash Receipts record. It assigns a Remittance Number as the primary key and adds this number to a field in the related Sales Invoice record. The Invoice Number from the Sales Invoice is also added to the remittance record as a reference. Mary then manually adds the customer number, amount, and payment date to the Cash Receipts record. At the end of the day she prepares a deposit slip and sends the checks to the bank. She files the remittance advice in her office. Sales Department Server Cash Receipts Warehouse Shipping Department Customer Customer Customer Order Produce Stock Release Stock Release Check Customer Sales Invoice Inventory Shipping Log Cash Receipts Remittance Advise Stock Release Prepare Goods for Shipment Review and Update Record Cash Receipts Sales Order/ Cash Rec System Pick Goods and send to Shipping Customer Order Prepare Packing Slip and BOL Remittance Advise Check Packing Slip Update Inventory BOL Bank Carrier Shipping Log BOL Num PK Invoice Number FK Sales Invoice Ship Date Carrier Invoice Number PK Customer Num FK Revenue File Structure Amount Due Sales Date Due Date Remit Num Customer Customer Num PK Name Street City State Zip Credit Limit Sales Rep Cash Receipts Remit Num PK Invoice Number FK Customer Num fK Quantity Cost Ext Cost Ven Num RR Num Based on your data analysis and interpretation of the results, you will create a deliverable to turn in. This deliverable will essentially be a report of the tasks you performed, how you performed them (this will be essential to include), and your discussion of the results. The deliverable will need to contain tables to help aid in describing your findings. See the requirements below for more detail. Specify relevant audit objectives for each management assertion presented in the report outline provided (remember Sales and AR are the key accounts). For each audit objective, briefly describe the test procedure and include a short summary of the results. See the Analytics ReportOutline Revenue.docx