Sales Order Processing The Company sales products according to customers sales orders. There is no defined Sales and Receivable procedure within the Company however Company has experiences staff who manage processes well.

Orders are obtained from foreign and main domestic customers via fax or e-mail. The customer agreement is not signed for each sales order or in general and there is no standard sales order form. Each Customer Sales Representatives (CSR) is responsible for particular group of customers. The CSRs are assigned to customer groups verbally, there is no any approved or formal document to define responsibilities for customer groups. Orders are firstly received by Marketing Department after that they are directed to the related CSRs. CSRs create a sales order on ERP system. Only Sales Department have the authorization to enter a sales order on ERP. After creation of sales order on system, sales order is approved by sales manager, Credit Controller and also CFO. If the sales order amount is exceeded 2 million, CEO is also approved. If any change needed after sales order approved, all subsequent changes made on the sales order (price or quantity) needs approval of all approvers. When the CSR enters an undefined customer on ERP while sales order creation, a warning message is shown and the transaction is not permitted. Unit price is automatically created on Sales order however CSRs can manually edit unit price on sales order. The information mail is sent to Sales Manager and related CSR but there is no approval system. Customer name, shipment address, foreign or local customer info, technic material info, currency and pricing date info is entered to sales order on system. System automatically gives a number for each sales order and these number is not editable. Discount %4 and %6 discount rate for A type dealer and %3 and %2 discount rate for B type dealer has been defined in the system if the customer is company's dealer. Every sales staff can modify the discount rate on system. These changes are reviewed quarterly by the Sales Manager and CFO. New Customer Procedures There is a new customer procedure within the company. A customer record is created on system, when to sale to a new customer. The customer acceptance is done by Sales Department. The customer is required to demonstrate some documents such as tax signboard, circular of signature, official gazette notices, letter of credit etc. The customers are divided into the groups according to their regions. The responsible from the groups are assigned verbally, there is no any approval or formal document for both responsibilities and customer creation process. Anyone from the Marketing department are able to create customer via ERP. There is no approval system for new customer master data. The system assigns a unique number to each customer master data. There are required fields such as company name, addresses, tax number, etc. to define the customer on system, Unless the template is complete, system doesnt allow to give an order.

For each customer there is a risk limit which is defined by the Finance Department with the cooperation of Sales Department. These credit limits are sent to the sales department monthly. Sales order is locked, if the amount in sales order is exceed the defined risk limit. Only CFO can unlock the sales order. Shipping Procedures All final products are sent to 09 packing unite after production process. The products are stocked up according to customers. The CSR reviews the Sales and Shipment Report on ERP to starts shipment process. The CSRs prepares a ship order on ERP and sent it to Shipping Department. Products are bar-coded and loaded to trucks according to ship order. The bar-coding is performed in 09 packing unite. Barcode scanner is a device to which they upload packing lists, and which is used to scan product barcodes. It makes the warehouse personnel to ensure that accurate products are loaded for delivery. After bar-coding, all shipping information are sent to ERP system automatically. Shipping Manager approves the shipping on system and 5 dispatch notes are printed automatically from the system. One dispatch note is sent to Accounting department, one is sent to driver, one is stayed in shipping department and three are sent to customer. After shipment is completed, the sales order ready to invoice.

QUESTION

This is my internal audit homework, what is the executive summary, risk control matrix and audit results of this case?