. Uncollectible sales 2. Mistakes in shipping orders to customers 3. Crediting customer payments to the wrong account 4. Theft of customer payments 5. Theft of inventory by employees 6. Excess inventory 7. Reduced prices for sales to friends 8. Orders later repudiated by customers who deny placing them 9. Failure to bill customers 10. Errors in customer invoices 11. Cash flow problems 12. Loss of accounts receivable data 13. Unauthorized disclosure of customer personal information 14. Failure to ship orders to customers a. Restricted access to master data b. Encryption of customer information while in storage c. Backup and disaster recovery procedures d. Digital signatures e. Physical access controls on inventory f. Segregation of duties of handling cash and maintaining accounts receivable g. Reconciliation of packing lists with sales orders h. Reconciliation of invoices with packing lists and sales orders i. Use of bar codes or RFID tags j. Periodic physical counts of inventory k. Perpetual inventory system l. Use of either EOQ, MRP, or JIT inventory control system m. Lockboxes or electronic lockboxes n. Cash flow budget o. Mailing of monthly statements to customers p. Credit approval by someone not involved in sales q. Segregation of duties of shipping and billing r. Periodic reconciliation of prenumbered sales orders with prenumbered shipping documents 12.11 M