The internal control system encompasses all the policies and procedures adopted by the management of an entity to assist it in achieving management objectives.Required:List and briefly explain five control objectives that an internal control system over sales aims to achieve

  • You are required to discuss five control objectives that an internal control system over sales aims to achieve.
  • To ensure that the company only sells to credit worthy customers. This is aimed at reducing the risk of selling to un credit worthy customers resulting in bad debt losses;
  •  To ensure that all sales made to customers are subsequently billed and recorded in the ledger;
  •  To ensure that all sales made are recorded in the correct financial period;
  •  To ensure that sales are billed at the approved selling prices;
  • To follow up on payments from customers and ensure that customers are adhering to the approved terms of credit;
  •  To ensure that there is proper control and authorisation of bad debts write offs.



Share through

Leave a Reply

Your email address will not be published.