Question

Which internal control(s) would you recommend to prevent the following situations from occurring?
1) Authorization of a credit memo for a customer’s account (on receivables) when the goods were never actually returned.
2) Theft of funds by the cashier, who cashed several checks and did not record their receipt.
3) Inventory was stolen by receiving dock personnel. The receiving clerk claimed the inventory was sent to the warehouse but the warehouse clerk did not record properly.
4) Writing off a customer’s accounts receivable balances as uncollectible in order to conceal the theft of subsequent cash collections.
5) Billing customers for the quantity ordered when the quantity shipped was actually less due to back-ordering of some items.



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  • CreatedMarch 04, 2015
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