(15)Discuss risks and relevant control objectives for Order to Cash (OTC) process?

Answer: Order to Cash (OTC or O2C) is a set of business processes that involve receiving and processing customer requests for goods or services. An order to cash cycle consists of multiple sub-processes including:

(1)Customer order is documented;

(2)Order/ service is scheduled;

(3)Order is shipped to customer or service is performed;

(4)Invoice is created and sent to customer;

(5)Customer sends payment /Collection; and

(6)Payment is recorded in general ledger.

Following are the risks and control objectives for Order to Cash process: