Identify and address inefficiencies in warranty processing with our comprehensive review audit work program, tailored to streamline operations and reduce costs. Its primary objective is to ensure that the company's methods of tracking and recording in-warranty repairs, out-of-warranty repairs, and sales credits comply with company policies and United States Generally Accepted Accounting Principles (GAAP). The document outlines detailed procedures, including obtaining and reviewing various product warranties, conducting process walk-throughs with relevant personnel, and analyzing return material authorizations (RMA) by date, product type and other relevant criteria. 

It also includes steps for evaluating whether claims are appropriately supported, accurately recorded in the company's SAP system, and correctly accounted for in financial statements. Additionally, the work program emphasizes analyzing trends, comparing processes to best practices, and making recommendations to enhance efficiency and cost-effectiveness. The deliverables include an internal audit report that provides an overview of the warranty process, identifies key business and financial risks, evaluates current controls, and offers recommendations for improvements. 

Audit steps include: 

• Obtain copies of the various warranties offered for the company’s domestic products.
• Generate a sample of return material authorizations (RMA) for the period.
• Review the RMA recording in SAP to determine if the items are being appropriately tracked and monitored.
• Review how the items are coded.