RISK AND CONTROL MATRIX FOR REVENUE CYCLE

Key Process Number

Control Frequency
Likelihood/Impact

Control Number

Control Owner

Control Type
Risk Number
Process Risk Control Objective Control Activities

1 Sales Order R1 -Incomplete and M -Controls provide C1 -Access Controls

Sales Department

Access Control

Weekly
inaccurate customer reasonable -Restriction of
orders assurance that access to master
-Sales to customers recorded sales order data
with poor credit are verified,
-Invalid customer validated, reviewed
orders and approved.

-Proper
authorization of
transactions.
2 Credit R2 -A/R are incorrectly M -Controls provide C2 -Account receivable

Accounts Receivable Department

Access Control

Weekly
Customer posted reasonable are properly
Service -Customer contract are assurance that accounted and
not clear, outdated or accordance with
do not exist. GAAP.

3 Cash R3 -Theft of cash H -Controls provide C3 -Separation of

Collection Department
Control
Physical and Access

Daily
Receipts/ -Incorrectly recorded. reasonable duties (Asset
Collections assurance that cash custody and
receipts are recording)
complete, verified -Reconcile records
and valid. with physical
counts.

4 Billing/Acco R4 -Accounts Receivable M -Controls provide C4 -Reconcile

Accounts Receivable Department

Physical and Access Control

Monthly
unts are incorrectly posted. reasonable subsidiary A/R
Receivable -Billing errors assurance that ledgers with
-Failure to bill customer invoice general ledgers
customers. are created by -Separate shipping
authorized and billing.
personnel
completely and
accurately.

-Controls provide
reasonable
assurance that
 customer accounts
are maintained by
authorized
personnel
completely and
accurately.

5 Shipping R5 -Errors in putting data H - Controls provide C5 -Access control to

Warehouse Department

Physical and Access Control

Daily
(e.g. merchandise, reasonable those authorized
quantities, address, assurance that personnel that will
etc.) in the shipping picking and packing reconcile the sales
document. the order order to the picking
are created by and packing order.
authorized
personnel
completely and
accurately.

-Controls provide
-Theft of inventory. reasonable -Restriction of
assurance that access to the
customer orders are inventory.
shipped by the
authorized
personnel
completely,
accurately and in a
timely manner.