Which One of the Following Internal Control Procedures Would Most

Multiple Choice

Which one of the following internal control procedures would most likely prevent the concealment of a cash shortage resulting from the improper write- off of a trade account receivable?

A) Write- offs must be approved by the cashier who is in a position to know if the receivables have, in fact, been collected.
B) Write- offs must be approved by a responsible officer after review of credit department recommendations and supporting evidence.
C) Write- offs must be authorised by company field sales employees who are in a position to determine the financial standing of the customers.
D) Write- offs must be supported by an aging schedule showing that only receivables overdue several months have been written off.