Control activities useful in reducing the risk of fraud focus on establishing the validity and occurrence of such transactions and include ________.
A)a portion of sales returns should be authorized by sales management
B)all sales returns should be authorized by sales management
C)the computer should match the debit memo information with the sales order
D)ensuring top management approves all credit memos before agreeing to a reduction in accounts receivable

Question

Quizplus · Accepted Answer

Requiring all sales returns to be authorized by sales management ensures that each return is valid and reduces the risk of fraudulent returns.

Control Activities Useful in Reducing the Risk of Fraud Focus