Retailers have many of the standard ledgers, purchasing and payroll can be key concerns. However, the main business areas are sales and inventories. Retailers often have point-of-sale systems which collect large volumes of useful data which IDEA can analyze. The main tests on inventories are similar to manufacturing companies with perhaps more emphasis on movement, margins, and shrinkage. Typical test areas include:
Cash Disbursements
Monitor cash disbursements for stores
Track cash disbursements for contractor and vendor services.
Summarize cash disbursements by account, bank, group, and vendor
Loss Prevention
Compare “No Sale” transactions to cash-voided transactions by associate
Identify stores with significant allowances
Isolate duplicate return transactions
Identify incomplete exchange transactions
Look for cheque purchases and refunds within 15 days
Find credit card purchases and refunds to different credit cards (same day)
Identify potential fraudulent or improper transactions through selling price differences between stores
Purchase Order Management
Reconcile order received to purchase order to identify shipments not ordered
Extract pricing receipt quantity variations by vendor and purchase order
Track scheduled receipt dates versus actual receipt dates
Compare vendor performance by summarizing item delivery and quality
Compare accrued
Additional Tests Included
Analyze gross profit
Identify items past their shelf life
Compare holdings and inventory turnover per product line between stores
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