Choose only one answer as well as state their reasons/rationale for the answer chosen. A customer entered the wrong account number on the memo line of the check mailed to the company. Consequently, another customer’s account was credited for that payment. The most effective way to prevent such problems would be to use: a. Turnaround documents b. A validity check of customer account numbers c. Closed loop verification d. Check digit verification of customer account numbers

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
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Choose only one answer as well as state their reasons/rationale for the answer chosen.

A customer entered the wrong account number on the memo line of the check mailed to the company. Consequently, another customer’s account was credited for that payment. The most effective way to prevent such problems would be to use:
a. Turnaround documents
b. A validity check of customer account numbers
c. Closed loop verification
d. Check digit verification of customer account numbers

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