Final answer:
It is true that in order to maintain a reliable internal control system, the credit-granting function should be separate from the sales function. This separation is designed to reduce the risk of fraud and conflict of interest.
Step-by-step explanation:
The statement that separation of duties in the sales/collection cycle should mandate that the credit-granting function be separate from the sales function is True.
This concept is a fundamental principle in the design of reliable internal control systems. The rationale behind this separation is to prevent any single individual from having the ability to both initiate a transaction and authorize the related credit, as this presents a conflict of interest and opens the possibility for fraud. For example, if the same person handles customer sales and also approves credit, they could potentially make unauthorized sales on credit to unqualified customers, which could result in financial loss for the company.