All of the following are important controls over credit memos except:
A) Proper segregation of duties to ensure that sales discounts taken were earned.
B) Credit memos should be approved by someone other than whoever initiated it.
C) Credit memos should be supported by a receiving document for returned goods.
D) Proper segregation of duties between access to customer records and authorizing credit memos.

Question

Quizplus · Accepted Answer

While proper segregation of duties is an important control over credit memos, it specifically refers to ensuring that the sales discounts taken were earned. The other options relate to important controls over credit memos, including approval by someone other than the initiator, support by a receiving document for returned goods, and proper segregation of duties regarding customer records and authorizing credit memos.

All of the Following Are Important Controls Over Credit Memos