Sales Audit Services

Sales Audit

A Sales Audit is primarily aimed at enhancing the efficiency of an organization’s sales department and can be carried out by either an internal or external sales auditor. This audit typically involves analyzing the hiring process, conducting market analysis such as SWOT analysis, and evaluating the company’s sales strategy.

It is crucial to note the interdependence of the sales and marketing departments within a company. While the sales department strategizes the volume of products and services to be sold, the marketing department contributes by attracting potential clients. Therefore, both departments are considered in a comprehensive sales audit.

A well-executed Sales Audit offers numerous benefits, including improved sales performance, enhancement of the company’s reputation among stakeholders and external parties, reduction in overall capital costs, and the detection of any unethical or fraudulent activities, among others.

In the UAE, retail businesses in shopping centers are mandated to undergo a Sales Audit or Gross Turnover Audit. These businesses may need to submit an audited Turnover statement to relevant authorities. Gross turnover represents the total sales generated by the retail business in a specific financial period or year. The auditor conducts the sales audit, verifying the revenue or gross sales generated by the company in that particular period.

This practice is commonly employed by Mall Management or Property Management, which charges a certain percentage from the tenant or retail owner based on their generated revenue.

The Sales Audit procedure

In accordance with UAE law, a sales audit in the UAE involves the following procedures:

• Verification of day-to-day sales in alignment with supporting documents.
• Preparation and compilation of the audit report in adherence to the conditions outlined in the contract.
• Conducting a check to ensure the gross sales report and the list of sales invoices for the lease period correspond with the associated ledgers.
• Vouching for sample invoices from the sales report, comparing the sales amount to the invoice list.
• Checks to ensure the accuracy of the gross sales statement.
• Reviewing the current internal control system for the revenue/invoice cycle to verify the completeness, accuracy, and adequacy of sales records.

During the audit process, the sales auditor will examine the following documents:

• Monthly Sales Report
• Trade License
• Bank statement reflecting cash sales figures
• Bank Statement displaying revenue figures