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For the sales and accounts receivable cycle, Company A has the following internal controls: (a) a credit limit check relevant to a processing of sales

For the sales and accounts receivable cycle, Company A has the following internal controls: (a) a credit limit check relevant to a processing of sales and (b) a segregation of duties relevant to a processing of customer payments. For each internal control,

(1) Identify whether it leads to a low, moderate, or high control risk.

(2) Explain why.

(3) Identify two ways to effectively test it.

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