Which of the following control weaknesses could result in problems with collectability of accounts receivable?
A)Unauthorized individuals can establish or change credit limits.
B)Matching shipping documents to sales records is done weekly.
C)When there is one error in a batch of transactions,the whole batch is rejected.
D)Cash receipts are matched to the customer accounts rather than against specific invoices.

Question

Quizplus · Accepted Answer

Unauthorized individuals establishing or changing credit limits can lead to extending credit to customers who may not be creditworthy, increasing the risk of uncollectible accounts.

Which of the Following Control Weaknesses Could Result in Problems