A customer failed to include her account number on her check,and the accounts receivable clerk credited her payment to a different customer with the same last name.Which control could have been used to most effectively to prevent this error?
A) closed-loop verification
B) duplicate values check
C) validity check
D) reconciliation of a batch control total

Question

Quizplus · Accepted Answer

Closed-loop verification involves comparing the data entered by the customer to the original data source and verifying that they match. In this case, if the accounts receivable clerk had used closed-loop verification to ensure that the account number on the check matched the customer's account number in the system, the error would have been prevented. B) Duplicate values check and C) Validity check would not have been effective in this situation as the customer's name was the same. D) Reconciliation of a batch control total is not relevant to this error.

A Customer Failed to Include Her Account Number on Her