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Management controls

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.

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.

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