Which of the following controls would best prevent the lapping of accounts receivable? Group of answer choices A. Segregate duties so that the clerk responsible for recording in the accounts receivable subsidiary ledger has no access to the general ledger. B. Request that customers review their monthly statements and report any unrecorded cash payments. C. Require customers to send payments directly to the company’s bank D. Request that customers make the check payable to the company
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Lapping is a fraudulent practice where an employee misappropriates cash from one customer and covers it up by applying payments from another customer to the first customer's account. Show more…
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Adi S.
a. The same employee requests, records, and makes payments for purchases of inventory. b. The company saves money by having employees involved in operations perform the only review of internal controls. c. Time is saved by not updating records for the use of supplies. d. The recordkeeper is not allowed to write checks or initiate EFTs. e. Each salesclerk is in charge of their own cash drawer.
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