Receivables Coursework Example | Topics and Well Written Essays - 250 words

Receivables - Coursework Example This is because the accountants after assessing his books of accounts are at a position to make a decision based on the profits or losses made in the year and the amounts of the accounts receivables due for the year. Blair’s recommendation could be biased and uninformed based on the bonuses of the medium sized companies as all managers’ aims are to maximize on profits. Internal controls are logical measure adopted by an organization used in ensuring that their business runs effectively to protect the organization from collapsing, such measures includes reviews and procedures. Detective internal controls which are measures taken after an irregularity has occurred, in this case the managers recommendation for accounting are useful for the future decision making. Some of the useful detective controls include the performance and quality assurance of the company reviews, reconciliations of the books of accounts to aid the manager in making sound decisions, conducting audits on the company’s’ books from different years and comparing inventory records with those of the different years. This way the manager is more knowledgeable and not just profit