One of the key internal controls to prevent transactions in the sales and collection cycle to fictitious customers is to
A)have the bank reconciliation done by someone who is independent of the treasury function.
B)account for the integrity of the numerical sequence of sales orders.
C)compare customer numbers entered to the customer master file.
D)include the sales price list of all products in the computer files.

Question

Quizplus · Accepted Answer

Comparing customer numbers entered to the customer master file is a direct method to ensure that sales transactions are made to legitimate, existing customers, thereby preventing transactions with fictitious customers. This control helps in verifying the authenticity of the customer by matching the entered customer information against the pre-approved and validated data in the customer master file.

One of the Key Internal Controls to Prevent Transactions in the Sales