（2005）Controls Assurance for the Order-to-Cash Cycle.pdfVIP

CONTROLS ASSURANCE for the ORDER-TO-CASH CYCLE SUPPORT REGULATORY COMPLIANCE. GAIN INSIGHT. IMPROVE REVENUE RECOVERY. G THE ORDER-TO-CASH CYCLE: N MAXIMIZE CONTROLS EFFECTIVENESS, MINIMIZE RISK I R For most organizations, cash is king, and optimizing the order-to-cash cycle has become a strategic priority. O An equally important priority in today’s business environment is compliance with an ever-increasing and complex body of regulatory requirements. Regulations such as the Sarbanes-Oxley Act require that all business processes T I be effectively monitored; however, the complex nature of the order-to-cash cycle presents a number of challenges N to the effective testing and monitoring of internal controls. O Because the order-to-cash cycle typically crosses several corporate functions, the resulting handoff from department M to department can lead to error, fraud, and delays, resulting in reduced cash flow. In addition, large amounts of data are typically housed in multiple IT silos, and these disparate sources make it difficult to gain insight into the critical data that underlies the entire process. S L The order-to-cash cycle is also prone to a high degree of risk, stemming from such issues as “rogue” sales O practices that may involve excessive discounts or unapproved credit extensions; mismanagement of receipts; and R cash fraud. Continuous monitoring