CAF-8 · Chapter 6 · Question 1 of 10
A junior auditor is reviewing the sales system at a retail client. Which of the following represents a major weakness in the segregation of duties regarding the sales process?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The sales representative is responsible for both finding new customers and setting their maximum credit limits.
Explanation
Allowing a sales representative to set credit limits creates a self-interest threat, as they may approve risky customers simply to earn higher sales commissions. Credit limits must be set and authorized by an independent credit control or finance manager.
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