Accounts Receivables Risk & Control M

INDEX

Sheet Name Lariab Inn

Question checklist Link
RCM Scorecard Link
Matrix Link
Risk & Control Matrix

EX

WHGI
Link
Link
Link
 Lariab Inn Hotel & Banquet Hall
Receivables Cycle
Controls Check List

Sr. No. Description

Documentation (for completeness & accuracy)
1 Receivables register is maintained.
2 Receivables register is updated daily.
3 Recording of receivables along with relevant supporting documents.
4 Reconciliation of Receivables ledge rcontrol account with the general ledger.
5 Reconciliation of account Receivables with bank statement.
6 Reconciliation of Receivables with source document for mathematical accuracy.
7

Compliance (for existence, occurrence & cut-off)

1 Procedures to ensure receivables are recorded in the relevant period.
2 Receivables Confirmation is done/not.
3 Documentation of confirmation of account receivables.
4 Is there is predetermined percentage of advanced receipt in case of banquet sales
Cross examination of account receivable balance in receivable register with trail balance and
5 balance sheet.
6 Review of receivable balance periodically for any inconsistency.
7 Segregation of duties between persons recording, billing, and collecting payments.
8 Recording of account receivables against correct customer.
9 Cross-checking details of the purchase order with the sales order.
10 Timely posting of receivable into the ERP system.
11 Aged analysis of receivables on monthly.
12 Unreconciled/Negative balances are investigated & corrected.
13 Access to SAP is limited to authorize individual only.
14 Timely posting of recievables into the SAP.

Authorization
1 Estimated bill is authorized.
2 Advance receipt for banquet sales is authorized.
3 Second Advance is properly authorized.
4 Final bill is properly authorized.
5 Payment terms are clearly included on invoice/bill for banquet sales.
6 Invoices/Bills for hotels sales in respect of receivables is duly authorized.

Bad debts
1 Proper record of allowance/provision created is maintained.
2 Proper approval of allowance/provision from relevant personnel..
3 Consistent allowance/provision methodology is used.
4 Bad debts are recorded in relevant period.
5 Bad debts are properly authorize by relevant personnel.
6 Reviewing allowance/provision monthly for mathematical accuracy.
otel & Banquet Hall
vables Cycle
ls Check List

Status

0%

0%

✘
✘

0%

100%
 RCM Scorecard

Key Notes:
Risk Parameter used in the scorecard
Risk Severity Checklist Question answered
Severe(Very High) 85% Above
High 65%-84%
Moderate 30%-64%
Low 0%-29%

Risk Scorecard
Risk %

Documentation (for
completeness & 0%
Type of Risk accuracy)

Compliance (for
existence, occurrence 0%
& cut-off)

Authorization 0%

Bad debts 100%

CM Scorecard for Lariab Inn

Severity

Low Moderate High Severe (Very High)

×
 Risk Assessm

Company Name WHGI

Area/Department Name: Account receivables Period

Rating
S no. Risk Probability Impact [P*I] Finding

10
Risk Assessment & Control Matrix

Recommendation

MASTER MATRIX

Imp

Very Low

Very high

High
Probability
Probability
Moderate

Low

Very Low

Initial Matrix
Imp
Very Low

Very high Moderate

Probability

High Sustainable

Moderate Sustainable

Low Sustainable

Very Low Sustainable

 Impact

Low Moderate High Very high

 Impact
Low Moderate High Very high

Severe Severe Critical Critical

Moderate Severe Critical Critical

Moderate Moderate Severe Critical

Sustainable Moderate Severe Critical

Sustainable Sustainable Moderate Severe

Probability Impact

Very high Very high

High High

Moderate Moderate

Low Low

Very Low Very Low

 Waheed Hafeez Ghee Industries
Account Receivables Cycle
Controls Check List

Sr. No. Description

Documentation (for completeness & accuracy)
1 Receivables register is maintained.
2 Receivables register is updated daily.
3 Recording of receivables along with relevant supporting documents.
4 Reconciliation of receivables ledger control account with the general ledger.
5 Reconciliation of account receivables with bank statement.
6 Reconciliation of receivables with source document for mathematical accuracy.
7 Reviewing letter of credit for accuracy.
8 Credit note is duly issued for sales return.

Compliance (for existence, occurrence & cut-off)

1 Procedures to ensure receivables are recorded in the relevant period.
2 Receivables Confirmation is done/not.
3 Documentation of confirmation of account receivables.
4 Is there is predetermined percentage of advanced receipt for credit sales.
Cross examination of account receivable balance in receivable register with trail balance and
5
balance sheet.
6 Review of receivable balance periodically for any inconsistency.
7 Segregation of duties between persons recording, billing, and collecting payments.
8 Recording of account receivables against correct customer.
9 Cross-checking details of the purchase order with the sales order.
10 Timely posting of receivable into the SAP.
11 Aged analysis of receivables on monthly.
12 Unreconciled/Negative balances are investigated & corrected.
13 Access to SAP is limited to authorize individual.
14 Timely posting of receivable into the SAP.
15 For high risk customer proper KIC (know your customer) is raised.

Authorization
1 Payments term are clearly included in the invoice.
2 Invoices in respect of receivables is duly authorize.
3 Credit note issued is duly approved by the relevant personnel.
4 Approval on cash settlement discount given to customer.
5 Approval of relevant personnel on Invoices & relevant supporting's for foreign customer.

Bad debts
1 Proper record of allowance/provision created is maintained.
2 Proper approval of allowance/provision from relevant personnel..
3 Consistent allowance/provision methodology is used.
4 Bad debts are recorded in relevant period.
5 Bad debts are properly authorize by relevant personnel.
6 Reviewing allowance/provision monthly for mathematical accuracy.
 z Ghee Industries
ceivables Cycle
Check List

Status

0%
know YOUR CUSTOMER
high risk

letter of gaunt tee/letter of credit

Hs code

100%
100%
custom document
certificate of origin

100%
 RCM Score

Key Notes:
Risk Parameter used in the scorecard
Risk Severity Checklist Question answered
Severe(Very High) 85% Above
High 65%-84%
Moderate 30%-64%
Low 0%-29%

Risk Scorecard

Documentation (for completeness &

accuracy)

Compliance (for existence,

Type of Risk

occurrence & cut-off)

Authorization

Bad debts
RCM Scorecard for WHGI

Severity

Risk % Low Moderate High Severe (Very High)

0%

100% ×

100% ×

100% ×
Severe (Very High)

×
 Risk Assessm

Company Name WHGI

Area/Department Name: Account Receivables Period

Rating
S no. Risk Probability Impact [P*I] Finding

8
Risk Assessment & Control Matrix

Recommendation

MASTER MATRIX

Imp

Very Low

Very high

High
Probability

Moderate
Proba
Low

Very Low

Initial Matrix

Imp
Very Low

Very high Moderate

Probability

High Sustainable

Moderate Sustainable

Low Sustainable

Very Low Sustainable

 Impact

Low Moderate High Very high

 Impact
Low Moderate High Very high

Severe Severe Critical Critical

Moderate Severe Critical Critical

Moderate Moderate Severe Critical

Sustainable Moderate Severe Critical

Sustainable Sustainable Moderate Severe

Probability Impact

Very high Very high

High High

Moderate Moderate

Low Low

Very Low Very Low