DEFICIENCIES NOTED UNAPPLIED OPERATIONAL PROCESS CONTROLS: Other Service managers confirmed that physical access to the Parts Warehouse is not restricted and that even the workshop employee could...

DEFICIENCIES NOTED UNAPPLIED OPERATIONAL PROCESS CONTROLS: Other Service managers confirmed that physical access to the Parts Warehouse is not restricted and that even the workshop employee could enter to the warehouse without any control. Periodic stock counts are not performed on a regular basis. Open job orders are not reviewed by appropriate manager on a periodic basis. Discounts given on parts are not reviewed by appropriate manager on a periodic basis. Material movement vouchers are not reviewed by appropriate manager on a periodic basis. Exception reports such as overrides/changes to master data like product code changes are not reviewed by appropriate manager on a periodic basis. Aftersales department has worked with unapproved customers on an open account basis instead of cash basis. Aftersales insurance receivables are not followed up for collection on a timely basis by the respective operations manager. INEFFECTIVE FINANCIAL CONTROLS: Periodic customer reconciliations are not performed. Nobody from Finance participates in the stock-counts Open account follow-up is not performed effectively and on time. Problematic situations are not escalated to the management. DEACTIVATION OF SOME SYSTEM CONTROLS: Service employee who is authorized to issue invoices has access to make changes in customer master data (including creating a new customer). The system allows changes to master data even if there has been a transaction posted over this customer. During invoicing, changes/overrides can be made to default customer group discounts field and customer information flowing from the master data and log reports are not created to review such overrides.