Knowledge for eAudIT

Report Name 02 Processes to WCGW to Controls - Global Oil and Gas 2018
Country Global
Industry Oil and Gas
Description List of example Processes with related What Could Go Wrongs and Controls
EXAMPLES ARE COPIED DOWN MULTIPLE ROWS TO FACILITATE FILTERING BY WHAT COULD GO WRONG OR CONTROL.

Processes What Could Go Wrongs Controls

Client Id Name Description Client Id Short Name Description of WCGW Client Id Short Name Description of Control
P1 Sales Sale of goods, including WCGW8 Invoicing error The invoice is incorrect C241 Credit control Objective: Valid receivables are recovered. The control will also detect
revenue, trade and other either for price or for the errors in invoicing and cash receipts recording/allocation as a
receivables, allowance for quantity of goods sold. consequence of its primary objective.
impairment of receivables,
sales returns and warranties. The aged accounts receivable report is the basis for performing the
Recording of contact assets following:
and contract liabilites. • Following up on customers with overdue accounts.

• Having regular communications with each customer which may be

documented / retained.

• Following up discrepancies and correcting/addressing/ preparing a

provision as relevant. Credit Control considers whether matters
identified indicate weaknesses in other parts of the
revenue/receivables process/controls that need to be and are rectified.

Although this is an ongoing control that operates on an as needed

basis, there is usually a periodicity around the frequency of analysis of
aged receivables. Therefore this control is often treated as a monthly
control.

The control will identify any differences not prevented/corrected by

other controls but only one or two months after the event.
P1 Sales Sale of goods, including WCGW8 Invoicing error The invoice is incorrect C203 3 way match - The details of each sales invoice, including the price, quantity, [and
revenue, trade and other either for price or for the sales (automated) other relevant details] are automatically compared with the
receivables, allowance for quantity of goods sold. corresponding details from the related shipping document and
impairment of receivables, customer purchase order or contract.
sales returns and warranties.
Recording of contact assets If the details agree, or the difference does not exceed more than
and contract liabilites. [amount or %], the invoice is automatically approved and generated.

If the details do not agree, the invoice is listed on an exception report,

for manual follow-up.

An accounts receivable clerk, who does not have conflicting duties,

follows up every item on the exception report.

Invoices are not generated or recorded until they have been cleared
from the report.
P1 Sales Sale of goods, including WCGW8 Invoicing error The invoice is incorrect C204 3 way match - The details of each sales invoice are manually compared with the
revenue, trade and other either for price or for the sales (manual) corresponding details from the related shipping document and
receivables, allowance for quantity of goods sold. customer purchase order or contract.
impairment of receivables,
sales returns and warranties. If the details agree, or the difference does not exceed more than
Recording of contact assets [amount or %], the invoice is manually approved.
and contract liabilites.
If the details do not agree, the invoice is [document how items are
flagged for follow-up.]

An accounts receivable clerk, who does not have conflicting duties,

follows up those items flagged for follow-up.

Invoices are not generated and recorded until they have been
matched [or identified as cleared by [name]].
P1 Sales Sale of goods, including WCGW8 Invoicing error The invoice is incorrect OGSC00 Review of Each period the reconciliation of the schedule of production volumes
revenue, trade and other either for price or for the 2 reconciliation of from the [production system] to the delivery volumes, from the [sales
receivables, allowance for quantity of goods sold. delivery volumes to system] and the inventory levels is reviewed by [name].
impairment of receivables, production volumes
sales returns and warranties. [Once the review is complete and the queries raised/changes
Recording of contact assets requested have been dealt with to the reviewers satisfaction [the
and contract liabilites. approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]
P1 Sales Sale of goods, including WCGW8 Invoicing error The invoice is incorrect OGSC00 Preparation of Each period, [name] reconciles the schedule of production volumes
revenue, trade and other either for price or for the 3 reconciliation of from the [production system] to the delivery volumes, from the [sales
receivables, allowance for quantity of goods sold. delivery volumes to system] and the inventory levels.
impairment of receivables, production volumes
sales returns and warranties. This preparer is independent of those in the areas of production and
Recording of contact assets sales
and contract liabilites.
P1 Sales Sale of goods, including WCGW8 Invoicing error The invoice is incorrect OGSC00 Management Each period [the manager] reviews the following KPI(s):
revenue, trade and other either for price or for the 5 review of sales - sales volumes, compared to the prior period and budgeted
receivables, allowance for quantity of goods sold. volumes and prices production volumes
impairment of receivables, - the average sales price in the period by product (e.g. $ per barrel)
sales returns and warranties. - [other applicable KPIs]
Recording of contact assets
and contract liabilites. The reviewer considers the variations in production volumes, the
changes in the global or local market value for products as applicable
[and other factors].

Where [the reviewer] has further questions or wishes to understand

reasons for the fluctuations in the KPIs, these are raised first with the
appropriate manager, who provides more detailed information where
applicable.

[Once the review is complete and the queries raised/changes

requested have been dealt with to the reviewers satisfaction [the
approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including WCGW8 Invoicing error The invoice is incorrect OGSC00 Lading document For each load, the driver is provided with a bill of lading, signed by the
revenue, trade and other either for price or for the 7 signed by driver weigh master. The driver confirms that the information give on the bill
receivables, allowance for quantity of goods sold. and weigh master of lading is correct as to quantity and nature of goods loaded and date
impairment of receivables, of shipment and signs the document to show their agreement. A copy
sales returns and warranties. is retained and sent to the [sales ledger clerk], who agrees the details
Recording of contact assets to the order from the marketing department before using the
and contract liabilites. information to raise the invoice.

The copy of the bill of lading is retained with the sales invoice.
P1 Sales Sale of goods, including WCGW8 Invoicing error The invoice is incorrect OGSC00 Shipping document For each load, the captain is provided with a bill of lading, signed by
revenue, trade and other either for price or for the 8 agreed between the dock master. The captain confirms that the information give on the
receivables, allowance for quantity of goods sold. captain and dock bill of lading is correct as to quantity and nature of goods loaded and
impairment of receivables, master date of shipment and signs the document to show their agreement. A
sales returns and warranties. copy is retained and sent to the [sales ledger clerk], who agrees the
Recording of contact assets details to the order from the marketing department before using the
and contract liabilites. information to raise the invoice.

The copy of the bill of lading is retained with the sales invoice.
P1 Sales Sale of goods, including WCGW9 Sales Entries in the general ledger C253 Review of bank Each period, the [name] reviews the bank reconciliation.
revenue, trade and other sub-ledger/ and sales sub-ledger reconciliation
receivables, allowance for general ledger (including invoices, credit [Once the review is complete and the queries raised have been dealt
impairment of receivables, error notes and cash receipts) do with to the reviewer's satisfaction, they document their authorization by
sales returns and warranties. not agree. [document how the reviewer indicates that the review is complete.]]
Recording of contact assets
and contract liabilites.
P1 Sales Sale of goods, including WCGW9 Sales Entries in the general ledger C320 Preparation of A bank reconciliation is prepared each period by [name], who is
revenue, trade and other sub-ledger/ and sales sub-ledger bank reconciliation independent of those responsible for processing cash transactions.
receivables, allowance for general ledger (including invoices, credit
impairment of receivables, error notes and cash receipts) do All differences greater than [amount] are followed up by the preparer
sales returns and warranties. not agree. and are either:
Recording of contact assets • investigated and cleared before the reconciliation is finalized;
and contract liabilites. • marked as to be followed up during the following period;
• marked as to be written-off, following approval by [name].
P1 Sales Sale of goods, including WCGW9 Sales Entries in the general ledger C400 Sub-ledger to GL Objective: No unexplained/ inappropriate differences between the
revenue, trade and other sub-ledger/ and sales sub-ledger reconciliation general ledger and receivables sub-ledger.
receivables, allowance for general ledger (including invoices, credit review -
impairment of receivables, error notes and cash receipts) do receivables Reconciliation is performed each period on a timely basis between the
sales returns and warranties. not agree. total balance on the receivables sub-ledger and the general ledger
Recording of contact assets account(s).
and contract liabilites.
Any differences are investigated and adjusted as appropriate.

The reconciliation and related support are reviewed by [the reviewer]

and any differences and/or adjustments are approved.
P1 Sales Sale of goods, including WCGW9 Sales Entries in the general ledger OGSC00 Preparation of Each period, the accounts receivable ledger is reconciled to the
revenue, trade and other sub-ledger/ and sales sub-ledger 9 reconciliation of general ledger by [name] who is independent of those processing
receivables, allowance for general ledger (including invoices, credit accounts [relevant process] transactions.
impairment of receivables, error notes and cash receipts) do receivable to GL
sales returns and warranties. not agree. All differences greater than [amount] are followed up by the preparer
Recording of contact assets and are either:
and contract liabilites. • investigated and cleared before the reconciliation is finalized
• marked as to be followed up during the following period
• marked as to be written off, following authorization by [name].

This control determines whether the data in the general ledger

matches the accounts receivable ledger, but does not provide any
assurance over the data in the accounts receivable ledger.
P1 Sales Sale of goods, including WCGW10 Sales cut-off Sales are recorded in the OGSC00 Review of daily Each period [the manager] reviews the meter readings from each
revenue, trade and other incorrect period. 1 pipeline meter pipeline.
receivables, allowance for readings
impairment of receivables, In order to perform the review, the reviewer performs the following
sales returns and warranties. procedures over the calibration summary:
Recording of contact assets -verifies that each meter was calibrated within the parameters set out
and contract liabilites. in the agreement with suppliers
-verifies that the calibration was completed by a qualified member of
staff and that the calibration was reviewed by another, more senior
manager

[Once the review is complete and the queries raised/changes

requested have been dealt with to the reviewers satisfaction [the
approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including WCGW10 Sales cut-off Sales are recorded in the OGSC00 Review of Each period the reconciliation of the schedule of production volumes
revenue, trade and other incorrect period. 2 reconciliation of from the [production system] to the delivery volumes, from the [sales
receivables, allowance for delivery volumes to system] and the inventory levels is reviewed by [name].
impairment of receivables, production volumes
sales returns and warranties. [Once the review is complete and the queries raised/changes
Recording of contact assets requested have been dealt with to the reviewers satisfaction [the
and contract liabilites. approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]
P1 Sales Sale of goods, including WCGW10 Sales cut-off Sales are recorded in the OGSC00 Preparation of Each period, [name] reconciles the schedule of production volumes
revenue, trade and other incorrect period. 3 reconciliation of from the [production system] to the delivery volumes, from the [sales
receivables, allowance for delivery volumes to system] and the inventory levels.
impairment of receivables, production volumes
sales returns and warranties. This preparer is independent of those in the areas of production and
Recording of contact assets sales
and contract liabilites.
P1 Sales Sale of goods, including WCGW10 Sales cut-off Sales are recorded in the OGSC00 Lading document For each load, the driver is provided with a bill of lading, signed by the
revenue, trade and other incorrect period. 7 signed by driver weigh master. The driver confirms that the information give on the bill
receivables, allowance for and weigh master of lading is correct as to quantity and nature of goods loaded and date
impairment of receivables, of shipment and signs the document to show their agreement. A copy
sales returns and warranties. is retained and sent to the [sales ledger clerk], who agrees the details
Recording of contact assets to the order from the marketing department before using the
and contract liabilites. information to raise the invoice.

The copy of the bill of lading is retained with the sales invoice.
P1 Sales Sale of goods, including WCGW10 Sales cut-off Sales are recorded in the OGSC00 Shipping document For each load, the captain is provided with a bill of lading, signed by
revenue, trade and other incorrect period. 8 agreed between the dock master. The captain confirms that the information give on the
receivables, allowance for captain and dock bill of lading is correct as to quantity and nature of goods loaded and
impairment of receivables, master date of shipment and signs the document to show their agreement. A
sales returns and warranties. copy is retained and sent to the [sales ledger clerk], who agrees the
Recording of contact assets details to the order from the marketing department before using the
and contract liabilites. information to raise the invoice.

The copy of the bill of lading is retained with the sales invoice.
P1 Sales Sale of goods, including WCGW71 Cash receipts Cash receipts are not C241 Credit control Objective: Valid receivables are recovered. The control will also detect
revenue, trade and other 9 are inaccurate booked, recorded to the errors in invoicing and cash receipts recording/allocation as a
receivables, allowance for incorrect customer account consequence of its primary objective.
impairment of receivables, or recorded for an incorrect
sales returns and warranties. amount. The aged accounts receivable report is the basis for performing the
Recording of contact assets following:
and contract liabilites. • Following up on customers with overdue accounts.

• Having regular communications with each customer which may be

documented / retained.

• Following up discrepancies and correcting/addressing/ preparing a

provision as relevant. Credit Control considers whether matters
identified indicate weaknesses in other parts of the
revenue/receivables process/controls that need to be and are rectified.

Although this is an ongoing control that operates on an as needed

basis, there is usually a periodicity around the frequency of analysis of
aged receivables. Therefore this control is often treated as a monthly
control.

The control will identify any differences not prevented/corrected by

other controls but only one or two months after the event.
P1 Sales Sale of goods, including WCGW71 Cash receipts Cash receipts are not C254 Review of cash Each period the reconciliation of the list of receipts from customers
revenue, trade and other 9 are inaccurate booked, recorded to the receipts posted to the general ledger to the deposit slip is reviewed by [name].
receivables, allowance for incorrect customer account reconciliation
impairment of receivables, or recorded for an incorrect [Once the review is complete and the queries raised/ changes
sales returns and warranties. amount. requested have been dealt with to the reviewer's satisfaction, they
Recording of contact assets [document how the reviewer indicates that the review is complete.]]
and contract liabilites.
P1 Sales Sale of goods, including WCGW71 Cash receipts Cash receipts are not C321 Preparation of cash Each period, [name] prepares a reconciliation of the list of receipts
revenue, trade and other 9 are inaccurate booked, recorded to the receipts from customers posted to the general ledger to the deposit slips.
receivables, allowance for incorrect customer account reconciliation
impairment of receivables, or recorded for an incorrect This preparer is independent of those [in the area of].
sales returns and warranties. amount.
Recording of contact assets
and contract liabilites.
P1 Sales Sale of goods, including WCGW71 Cash receipts Cash receipts are not C253 Review of bank Each period, the [name] reviews the bank reconciliation.
revenue, trade and other 9 are inaccurate booked, recorded to the reconciliation
receivables, allowance for incorrect customer account [Once the review is complete and the queries raised have been dealt
impairment of receivables, or recorded for an incorrect with to the reviewer's satisfaction, they document their authorization by
sales returns and warranties. amount. [document how the reviewer indicates that the review is complete.]]
Recording of contact assets
and contract liabilites.
P1 Sales Sale of goods, including WCGW71 Cash receipts Cash receipts are not C320 Preparation of A bank reconciliation is prepared each period by [name], who is
revenue, trade and other 9 are inaccurate booked, recorded to the bank reconciliation independent of those responsible for processing cash transactions.
receivables, allowance for incorrect customer account
impairment of receivables, or recorded for an incorrect All differences greater than [amount] are followed up by the preparer
sales returns and warranties. amount. and are either:
Recording of contact assets • investigated and cleared before the reconciliation is finalized;
and contract liabilites. • marked as to be followed up during the following period;
• marked as to be written-off, following approval by [name].
P1 Sales Sale of goods, including OGSWCG New/ amended Customers are entered onto C240 Credit approval [Reference/ financial information] is obtained for each potential new
revenue, trade and other W001 customer data the system: customer.
receivables, allowance for
impairment of receivables, - fraudulently; The [name] reviews all new customer information to determine if
sales returns and warranties. - that are not creditworthy; credit amounts are appropriate before offering the customer credit
Recording of contact assets - with no or inappropriate terms.
and contract liabilites. credit limits;
- with inappropriate discount The approval procedures require different levels of authorization
terms; depending on the [proposed credit line] and [the risk score] of the
- on terms that expose the customer. All proposals are considered by at least two members of
entity to unacceptable legal staff.
or revenue recognition risks;
-that are otherwise [Once the review is complete and the queries raised/ changes
unsuitable requested have been dealt with to the approver's satisfaction, they
[document how the approver indicates that the item is approved.]]

Management has designed this control to prevent potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including OGSWCG New/ amended Customers are entered onto C267 Exception/ edit An exception report is produced each period which details all changes
revenue, trade and other W001 customer data the system: report review - made to the customer data (i.e. new customers added and changes to
receivables, allowance for changes to other customer details) since the last report was run.
impairment of receivables, - fraudulently; customer data
sales returns and warranties. - that are not creditworthy; This is reviewed by [name] who reviews the items in the report, and
Recording of contact assets - with no or inappropriate the reasons for their inclusion, including any supporting information.
and contract liabilites. credit limits;
- with inappropriate discount The reviewer also confirms that the report is sequential to the
terms; previous report reviewed.
- on terms that expose the
entity to unacceptable legal [Once the review is complete and the queries raised/ changes
or revenue recognition risks; requested have been dealt with to the reviewer's satisfaction, they
-that are otherwise [document how the reviewer indicates that the review is complete.]]
unsuitable
Management has designed this control to detect and correct potential
misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including OGSWCG New/ amended Customers are entered onto C406 Accounting review [The manager] reviews the accounting treatment of each new or
revenue, trade and other W001 customer data the system: - customer sales amended sales contract.
receivables, allowance for contracts
impairment of receivables, - fraudulently; This analysis involves reviewing the new or amended sales contracts
sales returns and warranties. - that are not creditworthy; and any supporting documentation and analysing the facts in light of
Recording of contact assets - with no or inappropriate the applicable accounting framework.
and contract liabilites. credit limits;
- with inappropriate discount Where the facts match an existing scenario from the entity's
terms; accounting manual, the manager assesses whether the item is
- on terms that expose the accounted for in accordance with this policy. Where the facts have not
entity to unacceptable legal been anticipated by the existing accounting manual, the [manager]
or revenue recognition risks; reviews the analysis of the particular circumstances and
-that are otherwise recommended accounting treatment.
unsuitable
[Once the review is complete and the queries raised have been dealt
with to the reviewer's satisfaction, they [document how the reviewer
indicates that the review is complete.] ]

Management has designed this control to prevent potential

unintentional misstatements greater than [amount].
P1 Sales Sale of goods, including OGSWCG Inventory Inventory is incorrectly OGSC00 Review of daily Each period [the manager] reviews the meter readings from each
revenue, trade and other W002 recorded recorded, including 1 pipeline meter pipeline.
receivables, allowance for incorrecty non-removal of inventory at readings
impairment of receivables, sale In order to perform the review, the reviewer performs the following
sales returns and warranties. procedures over the calibration summary:
Recording of contact assets -verifies that each meter was calibrated within the parameters set out
and contract liabilites. in the agreement with suppliers
-verifies that the calibration was completed by a qualified member of
staff and that the calibration was reviewed by another, more senior
manager

[Once the review is complete and the queries raised/changes

requested have been dealt with to the reviewers satisfaction [the
approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including OGSWCG Inventory Inventory is incorrectly OGSC00 Review of Each period the reconciliation of the schedule of production volumes
revenue, trade and other W002 recorded recorded, including 2 reconciliation of from the [production system] to the delivery volumes, from the [sales
receivables, allowance for incorrecty non-removal of inventory at delivery volumes to system] and the inventory levels is reviewed by [name].
impairment of receivables, sale production volumes
sales returns and warranties. [Once the review is complete and the queries raised/changes
Recording of contact assets requested have been dealt with to the reviewers satisfaction [the
and contract liabilites. approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]
P1 Sales Sale of goods, including OGSWCG Inventory Inventory is incorrectly OGSC00 Preparation of Each period, [name] reconciles the schedule of production volumes
revenue, trade and other W002 recorded recorded, including 3 reconciliation of from the [production system] to the delivery volumes, from the [sales
receivables, allowance for incorrecty non-removal of inventory at delivery volumes to system] and the inventory levels.
impairment of receivables, sale production volumes
sales returns and warranties. This preparer is independent of those in the areas of production and
Recording of contact assets sales
and contract liabilites.
P1 Sales Sale of goods, including OGSWCG Inventory Inventory is incorrectly OGSC00 Oil and gas Once a period [name] verifies the quantity of fuel stored. The
revenue, trade and other W002 recorded recorded, including 6 inventory inspection entails noting the meter readings for specific inventory
receivables, allowance for incorrecty non-removal of inventory at measurement types. The inspectors raise queries with the [relevant head of
impairment of receivables, sale department] if:
sales returns and warranties.
Recording of contact assets - the reading from the meter appears unreasonable based on the
and contract liabilites. judgement of the inspector.

Adjustments required to the inventory listings are proposed by the

inspection team. They are reviewed by [name] and are posted by
[name]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including OGSWCG Incorrect Incorrect volumes are OGSC00 Review of daily Each period [the manager] reviews the meter readings from each
revenue, trade and other W003 volumes recorded by meters or scales 1 pipeline meter pipeline.
receivables, allowance for recorded readings
impairment of receivables, In order to perform the review, the reviewer performs the following
sales returns and warranties. procedures over the calibration summary:
Recording of contact assets -verifies that each meter was calibrated within the parameters set out
and contract liabilites. in the agreement with suppliers
-verifies that the calibration was completed by a qualified member of
staff and that the calibration was reviewed by another, more senior
manager

[Once the review is complete and the queries raised/changes

requested have been dealt with to the reviewers satisfaction [the
approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including OGSWCG Incorrect Incorrect volumes are OGSC00 Review of Each period the reconciliation of the schedule of production volumes
revenue, trade and other W003 volumes recorded by meters or scales 2 reconciliation of from the [production system] to the delivery volumes, from the [sales
receivables, allowance for recorded delivery volumes to system] and the inventory levels is reviewed by [name].
impairment of receivables, production volumes
sales returns and warranties. [Once the review is complete and the queries raised/changes
Recording of contact assets requested have been dealt with to the reviewers satisfaction [the
and contract liabilites. approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]
P1 Sales Sale of goods, including OGSWCG Incorrect Incorrect volumes are OGSC00 Preparation of Each period, [name] reconciles the schedule of production volumes
revenue, trade and other W003 volumes recorded by meters or scales 3 reconciliation of from the [production system] to the delivery volumes, from the [sales
receivables, allowance for recorded delivery volumes to system] and the inventory levels.
impairment of receivables, production volumes
sales returns and warranties. This preparer is independent of those in the areas of production and
Recording of contact assets sales
and contract liabilites.
P1 Sales Sale of goods, including OGSWCG Incorrect Incorrect volumes are OGSC00 Review of pipeline Each period [the manager] reviews the calibration summary showing
revenue, trade and other W003 volumes recorded by meters or scales 4 meter and scales that each meter was calibrated in accordance with the agreed
receivables, allowance for recorded calibration schedule.
impairment of receivables, summary
sales returns and warranties. Calibrations for each pipeline meter, each meter recording the
Recording of contact assets volumes loaded into tankers and the scales ar the NGL delivery depot
and contract liabilites. are performed by employees of the company and entered into the
calibration summary. Representatives from other parties can attend
the calibration if they wish and this will be indicated on the summary.

[Once the review is complete and the queries raised/changes

requested have been dealt with to the reviewers satisfaction [the
approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including OGSWCG Incorrect Incorrect volumes are OGSC00 Management Each period [the manager] reviews the following KPI(s):
revenue, trade and other W003 volumes recorded by meters or scales 5 review of sales - sales volumes, compared to the prior period and budgeted
receivables, allowance for recorded volumes and prices production volumes
impairment of receivables, - the average sales price in the period by product (e.g. $ per barrel)
sales returns and warranties. - [other applicable KPIs]
Recording of contact assets
and contract liabilites. The reviewer considers the variations in production volumes, the
changes in the global or local market value for products as applicable
[and other factors].

Where [the reviewer] has further questions or wishes to understand

reasons for the fluctuations in the KPIs, these are raised first with the
appropriate manager, who provides more detailed information where
applicable.

[Once the review is complete and the queries raised/changes

requested have been dealt with to the reviewers satisfaction [the
approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including OGSWCG Allowance for There are errors in the
revenue, trade and other W004 impairment of preparation of the estimate,
receivables, allowance for trade receivables caused by:
impairment of receivables, estimate • errors in the data inputs.
sales returns and warranties. • inappropriate assumptions.
Recording of contact assets • not applying the
and contract liabilites. requirements of the
applicable financial reporting
framework.
• inaccurate computation.
P1 Sales Sale of goods, including OGSWCG Invoice recording The invoice is not recorded C241 Credit control Objective: Valid receivables are recovered. The control will also detect
revenue, trade and other W005 error correctly, either for price or errors in invoicing and cash receipts recording/allocation as a
receivables, allowance for quantity sold consequence of its primary objective.
impairment of receivables,
sales returns and warranties. The aged accounts receivable report is the basis for performing the
Recording of contact assets following:
and contract liabilites. • Following up on customers with overdue accounts.

• Having regular communications with each customer which may be

documented / retained.

• Following up discrepancies and correcting/addressing/ preparing a

provision as relevant. Credit Control considers whether matters
identified indicate weaknesses in other parts of the
revenue/receivables process/controls that need to be and are rectified.

Although this is an ongoing control that operates on an as needed

basis, there is usually a periodicity around the frequency of analysis of
aged receivables. Therefore this control is often treated as a monthly
control.

The control will identify any differences not prevented/corrected by

other controls but only one or two months after the event.
P1 Sales Sale of goods, including OGSWCG Invoice recording The invoice is not recorded OGSC00 Management Each period [the manager] reviews the following KPI(s):
revenue, trade and other W005 error correctly, either for price or 5 review of sales - sales volumes, compared to the prior period and budgeted
receivables, allowance for quantity sold volumes and prices production volumes
impairment of receivables, - the average sales price in the period by product (e.g. $ per barrel)
sales returns and warranties. - [other applicable KPIs]
Recording of contact assets
and contract liabilites. The reviewer considers the variations in production volumes, the
changes in the global or local market value for products as applicable
[and other factors].

Where [the reviewer] has further questions or wishes to understand

reasons for the fluctuations in the KPIs, these are raised first with the
appropriate manager, who provides more detailed information where
applicable.

[Once the review is complete and the queries raised/changes

requested have been dealt with to the reviewers satisfaction [the
approver] documents their authorization by [document how the
approver indicates that the item is approved.] ]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including W15171 TT15 Contract - A contract with A customer C15172 TT Accounting [The manager] reviews the identification of new or amended contracts
revenue, trade and other incorrectly to provide goods or services, review of with a customer and the assessment of whether identified contracts
receivables, allowance for identified as in which are not an output of identification of are in or out of scope of the Standard.
impairment of receivables, scope, partially the entity’s ordinary contracts and
sales returns and warranties. in scope or out activities, is identified as scope assessment This analysis involves [add relevant details, such as reviewing the
Recording of contact assets of scope or of being in the scope of the planned (type of) sales transaction and/or current, new or amended
and contract liabilites. the Standard Standard, or A contract is contract with customer and any supporting documentation] and
not identified as being analyzing the facts in light of the applicable accounting framework,
partially in the scope of including consideration of whether the contract is to be accounted for
another Standard. on a stand-alone basis or with other contracts using the portfolio
approach.
- the entity does not
appropriately identify when A Where the facts match an existing scenario from the entity’s
counterparty meets the accounting manual the manager assesses whether the item is
definition of A customer for accounted for in accordance with this policy. Where the facts have not
all or part of an arrangement. been anticipated by the existing accounting manual the [manager]
reviews the analysis of the particular circumstances and
- the Standard was recommended accounting treatment.
incorrectly applied to an
arrangement that meets the [Once the review is complete and the queries raised have been dealt
scope exception as with to the reviewer’s satisfaction they [document how the reviewer
described in the Standard. indicates that the review is complete.]]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including W15172 TT15 Incorrect The entity applies the C15172 TT Accounting [The manager] reviews the identification of new or amended contracts
revenue, trade and other application of the revenue model to a portfolio review of with a customer and the assessment of whether identified contracts
receivables, allowance for portfolio of contracts that: identification of are in or out of scope of the Standard.
impairment of receivables, approach - have dissimilar contracts and
sales returns and warranties. characteristics, or scope assessment This analysis involves [add relevant details, such as reviewing the
Recording of contact assets - where insufficient evidence planned (type of) sales transaction and/or current, new or amended
and contract liabilites. exists to support that contract with customer and any supporting documentation] and
characteristics are similar, or analyzing the facts in light of the applicable accounting framework,
- where characteristics are including consideration of whether the contract is to be accounted for
similar but the financial on a stand-alone basis or with other contracts using the portfolio
statement effect of applying approach.
the Standard to the portfolio
materially differs from the Where the facts match an existing scenario from the entity’s
effect of applying the accounting manual the manager assesses whether the item is
Standard individually to the accounted for in accordance with this policy. Where the facts have not
contracts within the portfolio. been anticipated by the existing accounting manual the [manager]
reviews the analysis of the particular circumstances and
recommended accounting treatment.

[Once the review is complete and the queries raised have been dealt
with to the reviewer’s satisfaction they [document how the reviewer
indicates that the review is complete.]]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including W15173 TT15 Contract Identifying a contract C15171 TT Project Each period [the manager] reviews the [standard and/or customer
revenue, trade and other modifications not modification management specific] contract terms.
receivables, allowance for accounted for - An existing contract is review of contract
impairment of receivables, appropriately modified but the entity does terms The review involves [add relevant details, such as examining the
sales returns and warranties. not identify the modification contract and considering whether
Recording of contact assets resulting in inappropriate - the customer contract has any non-standard terms and conditions
and contract liabilites. revenue recognition. that result in the risk that the contract is not considered a contract with
- The entity accounted for a a customer in scope of the Standard or that otherwise impact revenue
contract modification but the recognition.
modification does not create - the contract is within the customer’s approved credit terms.
or change the enforceable - the identification of a contract and relevant contract terms have been
rights and obligations of the appropriately communicated to the accounting department].
parties to the contract (e.g.,
the modification was not [Once the review is complete and the queries raised/ changes
approved). requested have been dealt with to the reviewer's satisfaction, they
- When a change in scope is [document how the reviewer indicates that the review is complete.]]
approved but the
corresponding change in Management has designed this control to detect and correct potential
price is not yet determined, misstatements, both intentional and unintentional, greater than
the entity does not [amount].
appropriately estimate the
change to the transaction
price by applying the
constraint in Step 3 of the
Standard related to variable
consideration.

Accounting for a contract

modification
- The entity does not
appropriately assess
whether the contract
modification added
additional distinct goods or
services and, if so, whether
the prices of those distinct
goods or services are
commensurate with their
stand-alone selling prices.
- In situations where a
contract modification is not
treated as a separate
contract, the entity does not
appropriately assess
whether the remaining goods
or services under the
modified contract are distinct
from those goods or services
transferred to the customer
before the contract
modification, dictating
whether the modified
contract should be treated as
if it were a termination of the
existing contract and the
creation of a new contract or
treated on a combined basis
with the original contract.
- In situations where a
change in the transaction
price has occurred after a
contract modification, the
entity does not allocate the
change in the transaction
price to the appropriate
performance obligations
based on what contributed to
the change in the transaction
price.
P1 Sales Sale of goods, including W15173 TT15 Contract Identifying a contract C15172 TT Accounting [The manager] reviews the identification of new or amended contracts
revenue, trade and other modifications not modification review of with a customer and the assessment of whether identified contracts
receivables, allowance for accounted for - An existing contract is identification of are in or out of scope of the Standard.
impairment of receivables, appropriately modified but the entity does contracts and
sales returns and warranties. not identify the modification scope assessment This analysis involves [add relevant details, such as reviewing the
Recording of contact assets resulting in inappropriate planned (type of) sales transaction and/or current, new or amended
and contract liabilites. revenue recognition. contract with customer and any supporting documentation] and
- The entity accounted for a analyzing the facts in light of the applicable accounting framework,
contract modification but the including consideration of whether the contract is to be accounted for
modification does not create on a stand-alone basis or with other contracts using the portfolio
or change the enforceable approach.
rights and obligations of the
parties to the contract (e.g., Where the facts match an existing scenario from the entity’s
the modification was not accounting manual the manager assesses whether the item is
approved). accounted for in accordance with this policy. Where the facts have not
- When a change in scope is been anticipated by the existing accounting manual the [manager]
approved but the reviews the analysis of the particular circumstances and
corresponding change in recommended accounting treatment.
price is not yet determined,
the entity does not [Once the review is complete and the queries raised have been dealt
appropriately estimate the with to the reviewer’s satisfaction they [document how the reviewer
change to the transaction indicates that the review is complete.]]
price by applying the
constraint in Step 3 of the Management has designed this control to detect and correct potential
Standard related to variable misstatements, both intentional and unintentional, greater than
consideration. [amount].

Accounting for a contract

modification
- The entity does not
appropriately assess
whether the contract
modification added
additional distinct goods or
services and, if so, whether
the prices of those distinct
goods or services are
commensurate with their
stand-alone selling prices.
- In situations where a
contract modification is not
treated as a separate
contract, the entity does not
appropriately assess
whether the remaining goods
or services under the
modified contract are distinct
from those goods or services
transferred to the customer
before the contract
modification, dictating
whether the modified
contract should be treated as
if it were a termination of the
existing contract and the
creation of a new contract or
treated on a combined basis
with the original contract.
- In situations where a
change in the transaction
price has occurred after a
contract modification, the
entity does not allocate the
change in the transaction
price to the appropriate
performance obligations
based on what contributed to
the change in the transaction
price.
P1 Sales Sale of goods, including W15173 TT15 Contract Identifying a contract C15173 TT Legal [The name] reviews and authorizes each new or amended customer
revenue, trade and other modifications not modification department review sales terms or agreement, including both standard sales contracts and
receivables, allowance for accounted for - An existing contract is of new and customer specific sales contracts.
impairment of receivables, appropriately modified but the entity does amended customer
sales returns and warranties. not identify the modification sales terms or This involves reviewing the [item to be approved] and assessing
Recording of contact assets resulting in inappropriate agreement whether it is legally enforceable.
and contract liabilites. revenue recognition.
- The entity accounted for a [Once the review is complete and the queries raised/ changes
contract modification but the requested have been dealt with to the approvers satisfaction they
modification does not create [document how the approver indicates that the item is approved.]]
or change the enforceable
rights and obligations of the Management has designed this control to detect and correct potential
parties to the contract (e.g., misstatements both intentional and unintentional greater than
the modification was not [amount].
approved).
- When a change in scope is
approved but the
corresponding change in
price is not yet determined,
the entity does not
appropriately estimate the
change to the transaction
price by applying the
constraint in Step 3 of the
Standard related to variable
consideration.

Accounting for a contract

modification
- The entity does not
appropriately assess
whether the contract
modification added
additional distinct goods or
services and, if so, whether
the prices of those distinct
goods or services are
commensurate with their
stand-alone selling prices.
- In situations where a
contract modification is not
treated as a separate
contract, the entity does not
appropriately assess
whether the remaining goods
or services under the
modified contract are distinct
from those goods or services
transferred to the customer
before the contract
modification, dictating
whether the modified
contract should be treated as
if it were a termination of the
existing contract and the
creation of a new contract or
treated on a combined basis
with the original contract.
- In situations where a
change in the transaction
price has occurred after a
contract modification, the
entity does not allocate the
change in the transaction
price to the appropriate
performance obligations
based on what contributed to
the change in the transaction
price.
P1 Sales Sale of goods, including W15174 TT15 Errors in The entity applies the C15171 TT Project Each period [the manager] reviews the [standard and/or customer
revenue, trade and other identifying the Standard inappropriately to: management specific] contract terms.
receivables, allowance for contract with a - a legally enforceable review of contract
impairment of receivables, customer contract that does not meet terms The review involves [add relevant details, such as examining the
sales returns and warranties. the contract existence contract and considering whether
Recording of contact assets criteria in the Standard (e.g. - the customer contract has any non-standard terms and conditions
and contract liabilites. collectivity assessment) that result in the risk that the contract is not considered a contract with
- a contract that is not a customer in scope of the Standard or that otherwise impact revenue
enforceable under laws and recognition.
regulations in the jurisdiction - the contract is within the customer’s approved credit terms.
of the contract. - the identification of a contract and relevant contract terms have been
- a legally enforceable appropriately communicated to the accounting department].
contract with a customer that
is oral or implied by the [Once the review is complete and the queries raised/ changes
entity’s customary business requested have been dealt with to the reviewer's satisfaction, they
practices. [document how the reviewer indicates that the review is complete.]]
- a contract when each party
has the unilateral right to Management has designed this control to detect and correct potential
terminate a wholly misstatements, both intentional and unintentional, greater than
unperformed contract [amount].
without compensating the
other party.
- a consideration received for
a contract that does not
meet the contract existence
criteria or does not meet one
of the alternative recognition
criteria.
P1 Sales Sale of goods, including W15174 TT15 Errors in The entity applies the C15172 TT Accounting [The manager] reviews the identification of new or amended contracts
revenue, trade and other identifying the Standard inappropriately to: review of with a customer and the assessment of whether identified contracts
receivables, allowance for contract with a - a legally enforceable identification of are in or out of scope of the Standard.
impairment of receivables, customer contract that does not meet contracts and
sales returns and warranties. the contract existence scope assessment This analysis involves [add relevant details, such as reviewing the
Recording of contact assets criteria in the Standard (e.g. planned (type of) sales transaction and/or current, new or amended
and contract liabilites. collectivity assessment) contract with customer and any supporting documentation] and
- a contract that is not analyzing the facts in light of the applicable accounting framework,
enforceable under laws and including consideration of whether the contract is to be accounted for
regulations in the jurisdiction on a stand-alone basis or with other contracts using the portfolio
of the contract. approach.
- a legally enforceable
contract with a customer that Where the facts match an existing scenario from the entity’s
is oral or implied by the accounting manual the manager assesses whether the item is
entity’s customary business accounted for in accordance with this policy. Where the facts have not
practices. been anticipated by the existing accounting manual the [manager]
- a contract when each party reviews the analysis of the particular circumstances and
has the unilateral right to recommended accounting treatment.
terminate a wholly
unperformed contract [Once the review is complete and the queries raised have been dealt
without compensating the with to the reviewer’s satisfaction they [document how the reviewer
other party. indicates that the review is complete.]]
- a consideration received for
a contract that does not Management has designed this control to detect and correct potential
meet the contract existence misstatements, both intentional and unintentional, greater than
criteria or does not meet one [amount].
of the alternative recognition
criteria.
P1 Sales Sale of goods, including W15174 TT15 Errors in The entity applies the C15173 TT Legal [The name] reviews and authorizes each new or amended customer
revenue, trade and other identifying the Standard inappropriately to: department review sales terms or agreement, including both standard sales contracts and
receivables, allowance for contract with a - a legally enforceable of new and customer specific sales contracts.
impairment of receivables, customer contract that does not meet amended customer
sales returns and warranties. the contract existence sales terms or This involves reviewing the [item to be approved] and assessing
Recording of contact assets criteria in the Standard (e.g. agreement whether it is legally enforceable.
and contract liabilites. collectivity assessment)
- a contract that is not [Once the review is complete and the queries raised/ changes
enforceable under laws and requested have been dealt with to the approvers satisfaction they
regulations in the jurisdiction [document how the approver indicates that the item is approved.]]
of the contract.
- a legally enforceable Management has designed this control to detect and correct potential
contract with a customer that misstatements both intentional and unintentional greater than
is oral or implied by the [amount].
entity’s customary business
practices.
- a contract when each party
has the unilateral right to
terminate a wholly
unperformed contract
without compensating the
other party.
- a consideration received for
a contract that does not
meet the contract existence
criteria or does not meet one
of the alternative recognition
criteria.
P1 Sales Sale of goods, including W15174 TT15 Errors in The entity applies the C15174 TT Authorization of [The name] reviews and authorizes each new customer. This involves
revenue, trade and other identifying the Standard inappropriately to: new customers reviewing a new customer approval form and assessing whether
receivables, allowance for contract with a - a legally enforceable [add further details of what the reviewer considers prior to
impairment of receivables, customer contract that does not meet authorization].
sales returns and warranties. the contract existence
Recording of contact assets criteria in the Standard (e.g. [Once the review is complete and the queries raised/ changes
and contract liabilites. collectivity assessment) requested have been dealt with to the approvers satisfaction they
- a contract that is not [document how the approver indicates that the item is approved.]]
enforceable under laws and
regulations in the jurisdiction Management has designed this control to prevent potential
of the contract. misstatements both intentional and unintentional greater than
- a legally enforceable [amount].
contract with a customer that
is oral or implied by the
entity’s customary business
practices.
- a contract when each party
has the unilateral right to
terminate a wholly
unperformed contract
without compensating the
other party.
- a consideration received for
a contract that does not
meet the contract existence
criteria or does not meet one
of the alternative recognition
criteria.
P1 Sales Sale of goods, including W15175 TT15 Errors in The entity inappropriately C15171 TT Project Each period [the manager] reviews the [standard and/or customer
revenue, trade and other combination of treats the contracts by: management specific] contract terms.
receivables, allowance for contracts - not combining two or more review of contract
impairment of receivables, contracts with the same terms The review involves [add relevant details, such as examining the
sales returns and warranties. customer or related parties contract and considering whether
Recording of contact assets although the contract - the customer contract has any non-standard terms and conditions
and contract liabilites. combination criteria in the that result in the risk that the contract is not considered a contract with
Standard are met, or a customer in scope of the Standard or that otherwise impact revenue
- combining two or more recognition.
contracts with the same - the contract is within the customer’s approved credit terms.
customer or related parties - the identification of a contract and relevant contract terms have been
and accounting them as a appropriately communicated to the accounting department].
single contract when the
combining criteria are not [Once the review is complete and the queries raised/ changes
met. requested have been dealt with to the reviewer's satisfaction, they
[document how the reviewer indicates that the review is complete.]]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including W15175 TT15 Errors in The entity inappropriately C15172 TT Accounting [The manager] reviews the identification of new or amended contracts
revenue, trade and other combination of treats the contracts by: review of with a customer and the assessment of whether identified contracts
receivables, allowance for contracts - not combining two or more identification of are in or out of scope of the Standard.
impairment of receivables, contracts with the same contracts and
sales returns and warranties. customer or related parties scope assessment This analysis involves [add relevant details, such as reviewing the
Recording of contact assets although the contract planned (type of) sales transaction and/or current, new or amended
and contract liabilites. combination criteria in the contract with customer and any supporting documentation] and
Standard are met, or analyzing the facts in light of the applicable accounting framework,
- combining two or more including consideration of whether the contract is to be accounted for
contracts with the same on a stand-alone basis or with other contracts using the portfolio
customer or related parties approach.
and accounting them as a
single contract when the Where the facts match an existing scenario from the entity’s
combining criteria are not accounting manual the manager assesses whether the item is
met. accounted for in accordance with this policy. Where the facts have not
been anticipated by the existing accounting manual the [manager]
reviews the analysis of the particular circumstances and
recommended accounting treatment.

[Once the review is complete and the queries raised have been dealt
with to the reviewer’s satisfaction they [document how the reviewer
indicates that the review is complete.]]

Management has designed this control to detect and correct potential

misstatements, both intentional and unintentional, greater than
[amount].
P1 Sales Sale of goods, including W15175 TT15 Errors in The entity inappropriately C15175 TT System The sales system is configured in such a way as to combine contracts
revenue, trade and other combination of treats the contracts by: configuration for with a customer.
receivables, allowance for contracts - not combining two or more combining
impairment of receivables, contracts with the same contracts This is achieved by [add relevant details, such as a system
sales returns and warranties. customer or related parties configuration to recognize contracts in the system as a combined
Recording of contact assets although the contract contract when certain criteria are met such as the date of the contract,
and contract liabilites. combination criteria in the the nature of the goods or services].
Standard are met, or
- combining two or more Management has designed this control to prevent potential intentional
contracts with the same misstatements greater than [amount].
customer or related parties
and accounting them as a
single contract when the
combining criteria are not
met.
P1 Sales Sale of goods, including W15176 TT15 In identifying performance C15176 TT Project Each period [the manager] reviews the contract terms.
revenue, trade and other Inappropriate obligations the entity does management
receivables, allowance for identification of not properly evaluate the review of The review considers [add relevant details, such as the identification
impairment of receivables, performance following, resulting in an performance of performance obligations, including obligations for a series of distinct
sales returns and warranties. obligations in a inappropriate identification of obligations in a goods or services in a contract].
Recording of contact assets contract a performance obligation: contract
and contract liabilites. - whether a customer can [Once the review is complete and the queries raised/ changes
benefit from a good or requested have been dealt with to the reviewer's satisfaction, they
service on its own or can [document how the reviewer indicates that the review is complete.]]
only benefit from it together
with other readily available Management has designed this control to detect and correct potential
resources (capable of being misstatements, both intentional and unintentional, greater than
distinct). [amount].
- whether a good or service
is separately identifiable
(distinct within the context of
the contract) when
evaluating performance
obligations, leading to the
inappropriate identification of
performance obligations.
- implicit promises to transfer
goods or services based on
an entity’s established
business practices or
published policies.
- promises or administrative
tasks that do not transfer a
good or service to the
customer.
P1 Sales Sale of goods, including W15176 TT15 In identifying performance C15177 TT Accounting [The manager] reviews the identification of performance obligations,
revenue, trade and other Inappropriate obligations the entity does review of including obligations for a series of distinct goods or services in a
receivables, allowance for identification of not properly evaluate the identification of contract.
impairment of receivables, performance following, resulting in an performance
sales returns and warranties. obligations in a inappropriate identification of obligations This analysis involves reviewing [add relevant details, such as the
Recording of contact assets contract a performance obligation: current, new or amended contract with customer and any supporting
and contract liabilites. - whether a customer can documentation and analyzing the facts in light of the applicable
benefit from a good or accounting framework].
service on its own or can
only benefit from it together Where the facts match an existing scenario from the entity’s
with other readily available accounting manual the manager assesses whether the item is
resources (capable of being accounted for in accordance with this policy. Where the facts have not
distinct). been anticipated by the existing accounting manual the [manager]
- whether a good or service reviews the analysis of the particular circumstances and
is separately identifiable recommended accounting treatment.
(distinct within the context of
the contract) when [Once the review is complete and the queries raised have been dealt
evaluating performance with to the reviewer’s satisfaction they [document how the reviewer
obligations, leading to the indicates that the review is complete.]]
inappropriate identification of
performance obligations. Management has designed this control to prevent potential
- implicit promises to transfer misstatements, both intentional and unintentional, greater than
goods or services based on [amount].
an entity’s established
business practices or
published policies.
- promises or administrative
tasks that do not transfer a
good or service to the
customer.