Sally, a sales representative for WER Corporation, ensures that she does a thorough credit check for customers who want to purchase goods on account.The most important internal control WER should implement is:
A)Separation of duties.
B)Adequate documentation.
C)A risk management plan.
D)Employee training.

Question

Quizplus · Accepted Answer

Separation of duties is important in ensuring that no single employee has complete control over a transaction or process. In Sally's case, separating the duties of approving credit and processing the sale can help prevent fraud or errors. This control ensures that no single person has the authority to override the credit check process, increasing the accuracy and reliability of the credit check process. Adequate documentation, a risk management plan, and employee training are also important internal controls, but they are not as critical as separation of duties in this scenario.

Sally, a Sales Representative for WER Corporation, Ensures That She