Brown Company provides the follow- ing office support services for more than 100 small clients: 

1. Supplying temporary personnel 

2. Providing monthly bookkeeping services 

3. Designing and printing small brochures 

4. Copying and reproduction services 

5. Preparing tax reports Some clients pay for these services on a cash basis, some use 30-day charge ac- counts, and others operate on a contractual basis with quarterly payments. Brown's new office manager was concerned about the effectiveness of control procedures over sales and cash flow. At the manager's request, the process was re- viewed and the following facts were disclosed: 

a. Contracts were written by account executives and then passed to the accounts receivable department, where they were filed. Contracts had a limitation (ceil- ing) on the types of services and the amount of work covered. Contracts were payable quarterly in advance. 1