43.PR Co. designs and manufactures specialised furniture for offices in and around the city of Mumbai.
The revenue has been gradually increasing over the last few years. The main concern for PR Co is finding
credit-worthy customers who will make the payment on due dates. You are assigned as the audit team
member to test the controls in sales and purchase system of the entity. The year end of the entity is 31
March 2018. One of the control objectives of the sales system of PR Co is to ensure that goods and
services are sold to credit-worthy customers.
Which of the following control activities would assist the entity in achieving this objective?
(a) All sales orders above Rs.10 lakh is based on authorised price lists.
(b) Credit limits for all the customers are checked before sales orders are accepted.
(c) Overdue debts are chased each month by the credit controller.
(d) The aged-debt listing is reviewed by the finance director of PR Co on a monthly basis.

Option a) — is for accuracy of amount nothing to do with creditworthiness 
Option b) — focuses on credit worthiness 
Option c) — focuses on recovery of debtors
Option d) — focuses on recovery of debtors
Yes I also feel “b” is appropriate i will communicate it to BOS lets what they reply