Separation of duties in the sales/collection cycle should mandate that the credit-granting function be separate from the sales function.

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Separation of duties is an internal control measure that helps to minimize the risk of fraud, errors, and other types of financial reporting issues. In the sales/collection cycle, separating the credit-granting function from the sales function helps to ensure that sales staff do not have the ability to approve credit for customers or manipulate credit terms to close deals. This can help to prevent conflicts of interest and reduce opportunities for fraud.

Separation of Duties in the Sales/collection Cycle Should Mandate That