An Entity Uses Internal Control Procedures in Order to Mitigate

question 19

Essay

An entity uses internal control procedures in order to mitigate the risks to which the entity is exposed. Listed below are two internal control procedures which are applicable to an entity's sales and receivables system.
Match each internal control procedure with the risk mitigated from the list below:
-Sales are made to customers who cannot pay
-Sales are not made to existing customers
-Deliveries are not made to bona fide customers
-Customer refuses to pay for goods allegedly not received
-Customer orders not being fulfilled

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Definitions:

Purpose Statement

A declaration that outlines the objectives or goals of a project, paper, or organization, providing clear direction and focus.

Build Credibility

The process of establishing trustworthiness and expertise in a particular area or field, often through consistent demonstration of knowledge, skills, and ethical behavior.

Analyze Findings

The process of examining data or results in detail in order to interpret them and draw conclusions.

Grant Request

A formal appeal or proposal asking for financial support, often submitted to organizations or governmental bodies.