Which of the following are internal controls relating to accounts receivable?
I-Bad debt write-offs are authorised by a responsible officer.
II- All cash receipts are stored in a locked safe.
III-Monthly statements of account are sent to customers.

Question

Quizplus · Accepted Answer

I) Authorization of bad debt write-offs is an essential internal control that helps to prevent fraud or errors in accounts receivable.
II) Storage of all cash receipts in a locked safe is a good internal control, but it relates more to cash handling or cash receipts than accounts receivable.
III) Sending monthly statements of account to customers is another internal control designed to ensure the accuracy and completeness of accounts receivable records, and to encourage prompt payment.

Which of the Following Are Internal Controls Relating to Accounts