SALES DEPARTMENT

Receive Order – Process:

1. The sales process begins with the receipt of a customer order indicating the type and
quantity of merchandise desired.
2. Transcribe customer order to a formal sales order because the customer order is not in
standard format that the seller’s order processing system needs.
3. After creating a sales order, a copy of it is placed in the customer open order file for future
reference.
Decision Table Testing
Conditions:
1. There must be a physical document or;
2. The order must be made through mail or telephone.
Actions:
1. Create sales order
2. Do not process order

1 2 3 4

CONDITIONS:

Is there a physical document? Y Y N N

Is the order made through mail,

Y N Y N
telephone, etc.?

ACTIONS:

Create sales order X X X

Do not process order X

CASE 1 – There are both physical document and order made through mail, telephone and etc.,
thus, the company will create a sales order.
CASE 2 – There is physical document given but no order through mail, telephone or etc., thus,
the company can still create sales order to continue on the sales process.
CASE 3 – There are no physical document but has order made through mail, telephone and etc.,
therefore, they can still create sales order and process the order.
CASE 4 – Both physical document and order made through mail, telephone and etc., are not given
or is not present, this will constitute and error message or an indication to not process the order
and not create a sales order.
Using the decision table testing, the auditor can make decisions whether the internal
control are effective or not in processing the order. The table helps the auditor, by using the
possible combinations of actions and conditions that may arise, because of this it helps in
deciding if the proper process has been done or if the department are following the different
processes and procedures assigned.
If, the seller company follows the case 1 to case 4 combinations indicated above, that if
either there are physical document or order made through mails, telephone or etc., and with that
they can process the order and create sales order, or if there are both none, the company should
not process the order.
However if both the conditions are not meant, and the sales department created sales
order and processed the order, or if there are no source document received, but still there are
accounts recorded in the books that the transaction happened, there can be and irregularity in
the department or in the management, thus the internal control is weak and might result to
negligence or fraud.