An O2C internal audit programme tests whether customers are approved, credit is controlled, goods or services are dispatched before billing, invoices are accurate, GST reporting is complete and receivables are collected or escalated.
O2C errors affect revenue, cash flow, GST, receivables ageing and bad-debt exposure. Internal audit must connect customer master controls to billing, collection and credit-note evidence.
Objective: Customers and credit limits are valid, approved and current.
Customer master, credit approval, override log, block/unblock report.
New customers, high-limit customers and override exceptions.
Objective: Billing is complete, accurate and supported by delivery or service evidence.
Sales order, dispatch/POD/service proof, invoice, price master, discount approval.
High-value invoices, manual invoices, period-end sample.
Objective: Receipts are matched and overdue balances are followed up.
AR ageing, collection register, bank statement, dispute tracker, write-off memo.
Top balances, overdue buckets and write-offs.
Objective: Reversals and tax reporting are authorised and complete.
Credit note listing, approvals, GST/e-invoice reports, user access listing.
All high-value credit notes plus risk-based GST/access samples.
ICAI IASB lists the Compendium of Standards on Internal Audit as on February 2026 as applicable from 1 April 2026. Use this page as a practical workpaper starter, then verify the latest standard, law, regulation, ERP report and client fact pattern before concluding.
It should cover customer onboarding, credit limits, orders, dispatch or service proof, invoice accuracy, GST/e-invoice reporting, collections, credit notes, receivables ageing and user access.
No. It is a fieldwork starter. The internal auditor must tailor it to the approved scope, ERP, delegation matrix, locations, volumes, materiality, prior findings and current legal position.
Yes. Use the linked CORAA workbook for the cycle. It contains editable RCM, testing, evidence and monitoring sheets that can be used as a fieldwork base.
