Accounting Schedule Reconciliation and Open RO Audit

Monthly inspection template for reconciling factory receivable, warranty receivable, and open repair order (RO) schedules, identifying stale balances, and documenting clearing actions and control deficiencies.

Audit Scope and Reconciliation Setup

• Audit period and close date documented
  Record the month-end period, close date, and reconciliation cutoff used for the audit.
• Factory receivable schedule obtained for the current period
  Verify the current factory receivable aging or detail schedule is available for review.
• Warranty receivable schedule obtained for the current period
  Verify the current warranty receivable aging or detail schedule is available for review.
• Open RO schedule obtained for the current period
  Verify the current open repair order schedule is available for review.
• General ledger balances captured for all reconciled accounts
  Confirm the general ledger balances for factory receivable, warranty receivable, and related clearing accounts were captured.

Factory Receivable Reconciliation

• Factory receivable schedule agrees to general ledger within tolerance
  Enter the variance between the factory receivable schedule and the general ledger.
• Aged factory receivable items over 60 days reviewed
  Confirm all factory receivable items older than 60 days were reviewed for collectability and support.
• Unresolved factory receivable variances documented
  Verify any unresolved differences are documented with root cause, owner, and expected resolution date.
• Factory receivable support files complete
  Confirm invoices, claim backups, approvals, or other support are attached for sampled or disputed items.
• Stale factory receivable balances identified for write-off or adjustment
  Determine whether stale balances were identified and routed for write-off, adjustment, or escalation per policy.

Warranty Receivable Reconciliation

• Warranty receivable schedule agrees to general ledger within tolerance
  Enter the variance between the warranty receivable schedule and the general ledger.
• Warranty claims aging reviewed for items over 90 days
  Confirm warranty claims older than 90 days were reviewed for status, denial risk, and collection follow-up.
• Denied or short-paid warranty claims identified and tracked
  Verify denied or short-paid claims are separately tracked with disposition and next action.
• Warranty receivable support and approvals complete
  Confirm claim forms, manufacturer correspondence, and approval evidence are retained for reviewed items.
• Stale warranty receivable balances escalated
  Confirm stale warranty balances were escalated for adjustment, dispute resolution, or write-off consideration.

Open RO Aging and Clearing Review

• Open RO schedule ties to service system and general ledger
  Confirm the open RO schedule agrees to the service system and related accounting balances.
• Open RO items over 30 days reviewed for stale status
  Verify all open ROs older than 30 days were reviewed for completion, parts delays, or billing issues.
• ROs with no activity or no customer authorization identified
  Confirm ROs lacking activity, authorization, or support were identified and escalated.
• Clearing entries prepared for eligible open RO balances
  Verify eligible open RO balances were prepared for clearing, reclassification, or closure.
• Unusual or long-outstanding RO balances explained
  Confirm any unusual or long-outstanding balances have a documented explanation and owner.

Controls, Exceptions, and Follow-Up

• Exceptions summarized with root cause and owner
  Summarize all reconciliation exceptions, root causes, and responsible owners.
• Corrective action due dates assigned
  Enter the target completion date for each corrective action or follow-up item.
• Management review completed for unresolved items
  Confirm unresolved variances and stale balances were reviewed by management.
• Recurring control deficiency identified
  Indicate whether the same issue has recurred from prior periods and requires a control improvement.
• Inspector signature
  Inspector attestation that the monthly reconciliation review was completed.