A sales audit reviews a company’s sales team and strategies, with the sales management team responsible for audit management. Preparation includes meeting with reviewers, creating a timeline, and providing necessary reports. The audit ends with a final report containing recommendations. Companies may undergo multiple audits to comply with laws and accounting standards.
A sales audit is a formal review process that analyzes a company’s sales team and/or sales department. The review typically includes the structure, system, people, skills and sales strategies. The sales management team is typically responsible for audit management. To properly prepare for the sales audit, the sales management team should meet with the reviewers, ask which areas will be subject to a specific review, prepare documents in advance, and request a follow-up meeting with the reviewers to discuss the final report. The sales management team may also need to meet with company management to discuss the sales audit.
Auditors will likely schedule a pre-audit meeting with the department under review. This allows auditors to create an audit plan and schedule for the sales audit. A timeline is needed to ensure reviewers can properly review all items and not create cost overruns in the process. A contract or other agreement may also be drafted at this time. The formal agreement is the official start of the audit process.
The sales management team typically needs to know which specific areas or items will be reviewed during the audit. The sales manager usually collects information for the “customer prepared list”, which consists of reports that auditors review during the audit. Auditors will need the physical copies of the reports they need to recalculate or calculate sales data. This information is often for consecutive months. Auditors use standard auditing principles to verify the accuracy and materiality of information.
The audit usually ends after one to two weeks, depending on the areas under investigation. Reviewers will maintain their working papers and create a final report for the client. The final sales audit report will list any deficiencies or issues found by the auditors during the audit phase. The final report should also contain recommendations for the sales management team. Public companies might have the sales audit report released to the public for review by interested parties.
Public companies often undergo several audits throughout the year. Such audits ensure that a company complies with laws and accounting standards necessary to protect shareholder investments. A company that fails a sales audit may need to go through a corrective audit. The sales management team must prepare for the second audit similar to the first audit. Corrections in the failed areas are usually needed before reviewers come back and re-examine the information.
Protect your devices with Threat Protection by NordVPN
