Match each of the following objectives to the relevant control activities.
Objectives That Controls Are Trying to Achieve
a. Payments received are deposited intact on a timely basis.
b. Payments received are completely credited to the correct customer accounts.
c. Overdue accounts are followed up.
Control Activities
1. A list of incoming receipts is prepared by the person who opens the remittances and who delivers the list to a person independent of the deposit function.
2. An authorized individual makes regular collection calls on pastdue accounts.
3. Online entry that includes the input of a control total and/or hash total is used for each payment.
4. A duplicate deposit slip is prepared by someone other than the person opening the mail.
5. The company systematically sends past-due notices to delinquent customers.
6. Deposits are made daily.
7. Prenumbered batch control tickets include control totals of the number of remittances to be processed and total dollars to be applied.
8. Past-due accounts are periodically reviewed by senior collection officials to determine alternative collection procedures.
9. An agreement exists between the bank and the company on cash-handling activities, including when the remittances are added to the company's account.
10. Management monitors controls to follow up on discrepancies in accounts receivable postings.

  • CreatedSeptember 22, 2014
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