Which internal control(s) would you recommend to prevent the following situations from occurring?a. While entering the details about a large credit sale, a clerk mistakenly typed in a nonexistent account number. Consequently, the company never received the payment from this customer.b. A customer filled in a wrong account number on the remittance advice. Consequently, a clerk entered the same number into the system, and the payment was credited to another customer's account.c. After processing a large sales transaction, the inventory records showed negative quantities on hand for several items.
What will be an ideal response?
a. While entering the details about a large credit sale, a clerk mistakenly typed in a nonexistent account number. Consequently, the company never received the payment from this customer.
Use Validity check for actual customer records.
b. A customer filled in a wrong account number on the remittance advice. Consequently, a clerk entered the same number into the system, and the payment was credited to another customer's account.
Use Closed-loop verification when entering customers' account numbers.
c. After processing a large sales transaction, the inventory records showed negative quantities on hand for several items.
Use sign check on quantity on hand.
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