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Unformatted text preview: protect their business. 3. Are write-offs of bad debts approved by an official not associated with the selling or credit functions? a. No, Approved by Brenda Robertson, the credit manager, who initials them. The same person who handles the credit of the company shouldn’t be in charge of bad debts write-off because there should be a segregation of duties. 4. Are sales invoices checked as to prices and mechanical accuracy? a. No, Client considers it not cost effective. This can cause trouble with clients if someone believes another to be inaccurate. 5. Are customers billed by someone who has no other sales or accounts receivable responsibilities? a. No, billed by the bookkeeper, Don McKenna, who records journal entries. This also violates the control procedure of segregation of function....
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- Spring '10
- Accounting, internal control weaknesses, apple blossom cologne, Company Accounts Receivable, Receivable clerk gas, customer subsidiary ledgers