Explore BrainMass
Share

Explore BrainMass

    Management controls

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    INTERNAL CONTROL- SALES/RECEIVABLES/CASH

    Management is responsible for the establishment of the controls over the sales-receivables-cash cycle.

    Sales orders from customers should be accepted only in accordance with management's authorized criteria.

    The credit department should give credit approval in accordance with management's credit policies and authorized credit limits for each customer.

    Company policies should prohibit the release of any goods from the warehouse without authorization.

    Question: Discuss several management controls that may help ensure that all sales transactions are properly recorded.

    © BrainMass Inc. brainmass.com October 10, 2019, 3:11 am ad1c9bdddf
    https://brainmass.com/business/accounts-receivable-management/management-controls-410543

    Solution Preview

    Several Management controls that may help ensure that all sales transactions are properly recorded.
    INTERNAL CONTROL- SALES/RECEIVABLES/CASH

    Management is responsible for the establishment of the controls over the sales-receivables-cash cycle.

    Sales orders from customers should be accepted only in accordance with managements authorized criteria.
    The credit department should give credit approval in accordance with managements credit policies and authorized credit limits for each customer.
    Company policies should prohibit the release of any goods from the warehouse without authorization.
    Question: Discuss several management controls that may help ensure that all sales transactions are properly recorded.

    The management controls should include instructions about orders from new customers. Credit may be granted to new customers only if the customers have a positive reputation in the market have not made any known ...

    Solution Summary

    Management controls are discussed in great detail in this solution.

    $2.19