The Least Effective Control for Preventing an Organization from Processing

question 108

Multiple Choice

The least effective control for preventing an organization from processing fraudulent credit memo is to

• A)match each credit memo with a receiving report.
• B)require approval for each credit memo by the credit manager.
• C)reconcile total of credit memos to total debits posted to customers' subsidiary ledgers.
• D)sequentially prenumber all credit memos and perform a sequence check at the end of each day.

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Definitions:

Contract

A legally enforceable contract established between two or more entities.

Void

describes a legal situation where a contract or agreement has no legal force or effect, essentially rendering it null.

Deception

The act of misleading or deceiving someone by presenting false information or concealing the truth.

Contract

A legally binding agreement between two or more parties that is enforceable by law, outlining obligations that each party must fulfill.