Which of the following internal controls can be applied to the sales / collection process based on the role and purpose of the process?
A)Separation of duties
B)Bank reconciliation
C)Both A and B
D)Neither A nor B

Question

Quizplus · Accepted Answer

The sales/collection process involves multiple steps such as recording sales transactions, preparing invoices, receiving payments, depositing funds, and reconciling bank statements. It is crucial to implement internal controls to prevent errors, fraud, and misappropriation of assets. 
Separation of duties is an important control in the sales/collection process. It involves assigning different tasks to different individuals to prevent any one person from having too much control over the process. For example, the person who records sales transactions should not be the same person who receives and deposits payments, as this creates an opportunity for fraud. 
Bank reconciliation is also an important control in the sales/collection process. It involves comparing the company's records of cash transactions to the bank's records of those same transactions. Any discrepancies are investigated and resolved. This control helps to ensure that all cash transactions are recorded accurately and that no funds are misappropriated.
Therefore, both separation of duties and bank reconciliation are important internal controls that can be applied to the sales/collection process.

Which of the Following Internal Controls Can Be Applied to the Sales