For the sales and accounts receivable cycle, Company A has the following internal controls: (a) a credit limit check relevant to a processing of sales and (b) a segregation of duties relevant to a processing of customer payments. For each internal control,

(1) Identify whether it leads to a low, moderate, or high control risk.

(2) Explain why.

(3) Identify two ways to effectively test it.

Answer rating: 100% (QA)

Internal Controls for Sales and Accounts Receivable Cycle in Company A Control A Credit Limit Check ... View the full answer