Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?
A) Observe the process.
B) Review the trend in receivables write-offs.
C) Ask the credit manager about the effectiveness of the function.
D) Check for evidence of credit approval on a sample of customer orders.

Question

Quizplus · Accepted Answer

Reviewing the trend in receivables write-offs provides direct evidence of the effectiveness of the credit-granting function, as it reflects the actual outcomes of credit decisions.

Which of the Following Procedures Would Provide the Best Evidence