A customer forget to include her account number on her check,and the accounts receivable clerk credited her payment to a different customer with the same last name.Which control could have been used to most effectively to prevent this error?
A)Closed-loop verification.
B)Duplicate values check.
C)Reasonableness test.
D)Reconciliation of a batch control total.

Question

Quizplus · Accepted Answer

Closed-loop verification would have been the most effective control to prevent this error. This control involves verifying the accuracy of transaction data by using it to update a master file in real-time. In this case, if the account number was missing, the system would prompt the clerk to input it before allowing the transaction to be completed, reducing the risk of the payment being credited to the wrong account.

A Customer Forget to Include Her Account Number on Her