For effective internal control, employees maintaining the accounts receivable subsidiary ledger should not also approve
A) employee overtime wages.
B) credit granted to customers.
C) write-offs of customer accounts.
D) cash disbursements.

Question

Quizplus · Accepted Answer

Write-offs of customer accounts should be approved by someone other than the person maintaining the accounts receivable subsidiary ledger to prevent the possibility of the person writing off their own mistakes or fraudulent transactions.

For Effective Internal Control, Employees Maintaining the Accounts Receivable Subsidiary