Problem:
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.