Maintaining the accounts receivable records


Response to the following questions:

1. Why should the employee who handles cash receipts not have the responsibility for maintaining the accounts receivable records? Explain.

2. In an attempt to improve operating efficiency, one employee was made responsible for all purchasing, receiving, and storing of supplies. Is this organizational change wise from an internal control standpoint? Explain.

 

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Auditing: Maintaining the accounts receivable records
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