Circumstances within a company, related to sales returns, that indicate a high level of risk include all of the following, except:
A)Returns are received a one location with credit memos issued at the same location.
B)Quantities of products returned are often difficult to determine.
C)There is a high volume of credit memo activity.
D)Returns are received by consignees or under other arrangements not directly controlled by the company.

Question

Quizplus · Accepted Answer

Option A indicates a centralized process for handling returns and issuing credit memos, which can actually reduce risk by ensuring consistency and control over the process. The other options (B, C, D) describe situations that could increase the risk of errors or fraud.

Circumstances Within a Company, Related to Sales Returns, That Indicate