Who This Is For: 

• Businesses with high Days Sales Outstanding (DSO)
• Companies experiencing revenue recognition issues
• Organizations with significant bad debt write-offs
• Businesses wanting to improve working capital and cash conversion

O2C Audit Sub-Components:

a. Customer Management Audit:

• Customer master file accuracy
• Credit limit setting and approval
• Customer due diligence procedures
• Duplicate customer identification
• Customer statement reconciliation

b. Credit Controls Audit: 

• Credit policy existence and enforcement
• Credit limit override process 
• High-risk customer monitoring
• Credit review frequency
• Security and collateral documentation

c. Sales Process Audit:

• Sales order authorization
• Pricing accuracy vs. approved price lists
• Discount authorization controls
• Returns and cancellation process
• Special deal and exception management

d. Billing Controls Audit: 

• Invoice accuracy (quantities, prices, taxes)
• Timeliness of invoicing (days from delivery to invoice)
• VAT and TDS applicability on invoices
• Credit note issuance controls
• Invoice dispute resolution

e Collection Process Audit: 

• Dunning process (follow-up schedule, escalation)
• Days Sales Outstanding (DSO) analysis and trend
• Collection effectiveness by collector, by customer
• Collection incentive alignment (if any)
• Legal recovery process for long-overdue accounts

f. Receivables Controls Audit: 

• AR aging analysis (current, 30, 60, 90+ days)
• Bad debt reserve adequacy • Write-off authorization and process
• Cash application accuracy
• Bank statement to AR reconciliation

What We Deliver: 

• O2C process flowcharts
• DSO analysis and benchmarking
• Revenue recognition compliance assessment
• Collections effectiveness analysis
• Bad debt reserve adequacy opinion
• O2C improvement roadmap