Analysis of the internal control of the revenue process of FreshNest Limited and how it controls the risks involved

Abstract

This study discusses the internal controls used by FreshNest Limited, related to its revenue process. The objectives of this study are to recognize the Fraud Risks embedded in FreshNest's revenue process, to assess the company's internal controls' design and implementation, and to judge the overall efficiency of the system of controls to block frauds. The process of FreshNest's revenue analysis identifies some key risk areas such as order fraud, lapses in customer verification, inventory management faults, discrepancies in deliveries, poor management of customer feedback, and suspected accounting irregularities. All these risks have been addressed by the company by implementing certain controls such as customer order verification, product inspection, reconciliation of invoices, and financial reporting controls. Whereas the analysis identifies FreshNest's internal controls system to have an organized method to mitigate risk, certain areas of additional strengthening of the system are proposed. These are increasing verification of orders via AI-based fraud protection, customer identity verification via voice recognition, optimal management of inventory, adding responsibility for deliveries, simplifying the process of customer feedback, and increasing financial controls via periodical audits and data analysis.