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Heraklion Co ( Sept 2016)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Heraklion Co ( Sept 2016)

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.
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  • Author
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  • April 28, 2018 at 3:14 pm #449177
    niki27
    Member
    • Topics: 82
    • Replies: 15
    • ☆☆

    Dear Sir,

    Having read through this qn, I have a doubt,

    One line in the qn goes like this,

    “Sales staff are responsible for assessing new customers’ creditworthiness and proposing a credit limit which is then authorised by the sales director”

    While the deficiency of this means there’s a risk of setting limits just to achieve targets, my qn is this,

    Could I say that if the new customers have some connection, (say family relation) with Heraklion , or its current customers, then those companies will be given preference or even lower credit targets compared to other new customers?

    It is silly, but would the examiner accept that as a deficiency? And the control would be the same like (checking bank references etc..) with the added test of confirming no connection between any co. other than being potential customers ( which would be tedious)

    Thanks

    April 29, 2018 at 11:04 am #449277
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10649
    • ☆☆☆☆☆

    It would be very difficult to ensure there is no connection between the new customer and the company. I could also suggest that family connection should be looked at closely in case they were given too favourable treatment.

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