What are the risks in the following internal control standard if it is not followed: L. Documented procedures defining collection as well as contact and reporting frequency must be properly evaluated and approved and must adhere to applicable business policy. 2. Regular reviews of the customer's unpaid balances are required by the collection department, which is also required to start collection actions on any unpaid accounts. The client credit files must have sufficient documentation of collection operations. 3. Customer correspondence, such as billing or shipping issues, needs to be looked into and resolved quickly. 1. Customer correspondence, such as billing or shipping issues, needs to be looked into and resolved quickly.
What are the risks in the following internal control standard if it is not followed: L. Documented procedures defining collection as well as contact and reporting frequency must be properly evaluated and approved and must adhere to applicable business policy. 2. Regular reviews of the customer's unpaid balances are required by the collection department, which is also required to start collection actions on any unpaid accounts. The client credit files must have sufficient documentation of collection operations. 3. Customer correspondence, such as billing or shipping issues, needs to be looked into and resolved quickly. 1. Customer correspondence, such as billing or shipping issues, needs to be looked into and resolved quickly.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:What are the risks in the following internal control standard if it is not followed:
1. Documented procedures defining collection as well as contact and reporting frequency must be properly evaluated and approved and
must adhere to applicable business policy.
2. Regular reviews of the customer's unpaid balances are required by the collection department, which is also required to start collection
actions on any unpaid accounts. The client credit files must have sufficient documentation of collection operations.
3.Customer correspondence, such as billing or shipping issues, needs to be looked into and resolved quickly.
4. Customer correspondence, such as billing or shipping issues, needs to be looked into and resolved quickly.
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