Question

Smith Manufacturing Company's accounts receivable clerk has a friend who is also Smith's customer. The accounts receivable clerk, on occasion, has issued fictitious credit memoran­dums to his friend for goods supposedly returned. The most effective procedure for prevent­ing this activity is to:

Answer 1

The correct answer is D) require receiving reports to support all credit memorandums before they are approved.

Step-by-step explanation:

The implementation of reports as a control measure assures the organization of evaluating the work performed by the accounts payable assistant, so if there is an intention to continue with the inappropriate practice of helping his friend, it is expected to detect it before That becomes repetitive and harmful.