Answer
Segregation of duties
Fixing roles and responsibilities
Proper authorization
Monitoring of receivables
Work Step by Step
Segregation of duties: Jobs of each person should be separated. The person effecting the sales should not have access to the books of accounts in which sales and receivables are recorded.
Fixing roles and responsibilities: The roles and responsibilities of each person in the sales and receivable departments should be clearly defined.
Proper authorization: All sales and receipts from the credit customers should be properly authorized.
Monitoring of receivables: There should be a cross-checking mechanism to trace the credit sales with related receivables and determining the age-wise analysis of receivables.
