What internal control or procedure(s) would provide protection against the following threats? An employee makes a credit sale to a customer who is already four months behind in making payments on his account.An employee writes off a customer’s accounts receivable balance as uncollectible to conceal the theft of subsequent cash payments from that customerCustomers are billed for the quantity ordered, but the quantity shipped is actually less because some items have been back ordered.The mailroom clerk steals checks and then endorses them for deposit into the clerk’s personal bank accountGoods are shipped to a customer, but that customer is not billed.

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Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 11CYBK

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What internal control or procedure(s) would provide protection against the following threats?

An employee makes a credit sale to a customer who is already four months behind in making payments on his account.
An employee writes off a customer’s accounts receivable balance as uncollectible to conceal the theft of subsequent cash payments from that customer
Customers are billed for the quantity ordered, but the quantity shipped is actually less because some items have been back ordered.
The mailroom clerk steals checks and then endorses them for deposit into the clerk’s personal bank account
Goods are shipped to a customer, but that customer is not billed.

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