The likely result of a lack of proper authorisation in the sales and collection cycle is:
A) the loss of company assets by shipping goods to fictitious customers.
B) the loss of potential revenue by billing sales at an incorrect price.
C) the loss of company assets by shipping goods to customers who fail to pay for them.
D) all of the above

Question

Quizplus · Accepted Answer

A lack of proper authorization could potentially result in all of the above scenarios occurring, leading to the loss of company assets and revenue. Without proper authorization, sales may be processed and goods shipped to fictitious customers, resulting in the loss of company assets. Additionally, without proper authorization, sales may be billed at an incorrect price, leading to the loss of potential revenue. Finally, a lack of proper authorization may result in goods being shipped to customers who ultimately fail to pay for them, resulting in further loss of company assets.

The Likely Result of a Lack of Proper Authorisation in the Sales