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CS Professional · Internal and Forensic Audit · Special Points relating to Internal Audit in various Entities

Mehta Telecom Services Ltd bills 40 lakh prepaid and postpaid subscribers through an automated billing system. The internal auditor wants assurance that rated call usage records reach the billing system completely. Which approach best provides this?

Reconcile usage records from the network switch with those received and rated by the billing system, and follow up rejected or suspended records. This revenue assurance check tests completeness at each data hand-off, revealing unbilled usage that other reviews, such as promotion costs or warehouse stock, cannot detect.

  1. AReconcile usage records generated at the network switch with records received and rated by the billing system, and investigate rejected or suspended recordsCorrect
  2. BReview only the sales promotion expenses
  3. CCheck that the board has approved the annual report
  4. DVerify the physical existence of handsets in the warehouse

Explanation

Revenue assurance in telecom relies on reconciling data between the network source and the billing system at each hand-off. Differences and suspended records show leakage. The other options do not test the completeness of usage data flowing into billing.

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