Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?
Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?
Reviewing the trend in receivables write-offs would provide the best evidence of the effectiveness of a credit-granting function. A decrease in write-offs would indicate that the credit-granting function is effectively assessing creditworthiness and minimizing the risk of bad debts.
the more write-off , the less control and less efficiency the less write-off, the high efficiency