Vendor Rebates
Audit Work Program
PROJECT TEAM MEMBERS: * Project Timing | Date | Comments | * Planning | | | Fieldwork | | | Report Issuance (Local) | | | Report Issuance (Worldwide) | | |
ITEMS TO BE CONSIDERED:
Audit Objectives
To review supporting documentation for significant or unusual reconciling items and determine whether: * Vendor rebate receivables have been properly recorded * Vendor rebate receivables have been properly calculated according to terms of the vendor contracts * The general reserve for vendor rebates and the inventory adjustment are adequate Time | Project Work Step | Initial | Index | | Preliminary review process | | | | PLANNING: | | | | Obtain and document an understanding of the accounting process and the vendor rebate program. | | | | Document the methodology behind the inventory adjustments and assumptions used when booking the inventory adjustment. | | | | Inquire as to the appropriate level of management and describe the policies and procedures that management has in place to monitor compliance with terms of the vendor contracts. | | | | Inquire as to the appropriate level of management to determine whether there are adequate internal controls over the recording of vendor rebates. | | | | Discuss the audit with the following personnel and determine whether there are any areas which require special attention: | | | | * Corporate accounting | | | | * Senior accountant, vendor rebates | | | | * Vendor rebate analyst | | | | PROCEDURES: | | | | Obtain trial balance/lead schedules: | | | | * Obtain the trial balance for the applicable ending period from the vendor rebate senior accountant. | | | | * From the trial balance, select a sample of vendor rebate balances to test. | | | | * Obtain the