Internal Audit · ENG-101
Q3 FY26 SOX Testing — Order to Cash
Test the design and operating effectiveness of key controls over revenue and receivables for the Q3 interim period.
Phase
Fieldwork
74% complete
Hours
918
of 1240 planned
AI / human split
806 / 112
Hours executed
Open issues
3
On track
Engagement facts
- Type
- SOX
- Audit Manager Agent
- Morgan
- Dates
- Aug 4 – Oct 3
- Status
- On track
- Progress
- 74%
Manager agent view
Morgan · Audit Manager Agent
Work is tracking to plan. The critical path runs through exception EX-119: the deficiency severity judgment must be approved before the Order to Cash conclusion can be finalised.
Audit program
Objective + risk + scope + methodology, translated into procedures
| Step | Procedure | Control | Agent | Evidence | Reviewer | Status |
|---|---|---|---|---|---|---|
| P-01 | Understand the credit memo process and confirm the FY26 workflow change | R2C-014 | Kai | Walkthrough WT-116 | Dev | Complete |
| P-02 | Obtain and validate the population of credit memos over $25K | R2C-014 | Tessa | EV-2041 | Dev | Complete |
| P-03 | Select a sample of 45 items using methodology §7.3 | R2C-014 | Tessa | Sampling memo | Dev | Complete |
| P-04 | Test each sample for the five approval attributes | R2C-014 | Tessa | WP R2C-014 | Dev | In progress |
| P-05 | Perform full-population analytic on returns-queue memos | R2C-014 | Nova | Analytic AN-77 | Morgan | In progress |
| P-06 | Evaluate exception severity and compensating controls | R2C-014 | Morgan | Deficiency memo DE-31 | Human — SOX Director | Review |
| P-07 | Test the monthly revenue analytic review for three months | FCR-003 | Tessa | WP FCR-003 | Dev | Complete |
| P-08 | Validate the aged AR key report used in the reserve estimate | IPE-005 | Tessa | WP IPE-005 | Dev | Review |
| P-09 | Independent QA review of the Order to Cash workpaper set | All | Juno | QA checklist | Human — CAE | In progress |
Workpapers
6 in this engagement
| Workpaper | Preparer | Reviewer | Notes | Exceptions | Status |
|---|---|---|---|---|---|
Credit memo secondary approval testing WP-R2C-014 | Tessa | Dev | 2 | 1 | In review |
Contract review for revenue conclusions WP-R2C-002 | Tessa | Dev | 0 | 0 | Prepared |
Monthly revenue analytic review WP-FCR-003 | Tessa | Dev | 0 | 0 | Reviewed |
Aged AR key report validation WP-IPE-005 | Tessa | Dev | 1 | 0 | In review |
Vendor master additions testing WP-P2P-008 | Kai | Dev | 1 | 2 | Draft |
Full-population credit memo analytic WP-AN-077 | Nova | Morgan | 0 | 7 | Draft |
Issues raised
2 findings
| Finding | Rating | Owner | Due | Status |
|---|---|---|---|---|
Credit memo approval routing gap after workflow change F-2074 | High | Director, Revenue Accounting | Dec 31, FY26 | Draft |
Duplicate vendor checks not evidenced F-2061 | Low | Procurement Controller | Nov 15, FY26 | Issued |
Recent agent activity
| Task | Agent | State | Progress | Updated |
|---|---|---|---|---|
| Test RCM control R2C-014 — Credit memo approval | Tessa | Executing | 72% | 2 min ago |
| Investigate exception EX-119 across full population | Nova | Executing | 54% | 6 min ago |
| Evaluate severity of exception EX-119 | Morgan | Awaiting human | 90% | 18 min ago |
| User access review testing — NetSuite privileged roles | Rowan | In review | 100% | 42 min ago |
| Draft annual audit plan with resource scenarios | Avery | Awaiting human | 100% | 1 hr ago |