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Criticize the following statement: “Because the sales department maintains relationships with customers, personnel from that department...

Criticize the following statement: “Because the sales department maintains relationships with customers, personnel from that department should grant credit and decide when accounts should be written off as uncollectible.”

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Sales department maintain direct relationship with customers they will have a good idea about the nature of their account so it will be better to take their recommendations for writing of accounts or giving credit at the same time there is a inherent risk that some personnel may collude with customers and cause financial loss to the company so it will be better to maintain 2 tier approval system so that we can eliminate that risk

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