The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to
A)supervise the accounts receivable department
B)limit access to credit memoranda
C)prenumber and sequence check all credit memoranda
D)require management approval for all credit memoranda

Question

Quizplus · Accepted Answer

Requiring management approval for all credit memoranda ensures that there is a higher level of scrutiny and oversight, making it more difficult for fictitious credit memoranda to be created without detection. This control helps in verifying the legitimacy of sales returns and the corresponding issuance of credit memoranda.

The Most Effective Internal Control Procedure to Prevent or Detect