Due to an increase in the number of fraudsters in different business spheres, individuals, as well as entities, have increasingly become susceptible to duping. One of the strongest suggestion to preventing fraud presented by the author of the essay is vetting on who to offer credit. Although the point presented is strong, the establishment of the argument could be made stronger through further development. A credit card, for example, is one of the most indispensable tools that could be used by the entity issuing a credit to avoid falling under any unprecedented situation. With a credit card, it is possible for the credit card issuer to check the likelihood of the customer to pay him or her back. This is possible through credit investigation. Besides, the records kept by the issuer can be reviewed before offering one credit.
The second suggestion offered by the author of the essay is a lien agreement. In most circumstances, agreements are written. The author presents a point by stating that it is important to ensure that an agreement exists. However, the point presented could be made stronger by mentioning some financial documents such as promissory notes that could easily be used as evidence of payment made to a customer(Iuga, 2016). Besides the above example, Kimmel, et al (2010) also discusses tools to decision making. If employed, it is possible to avoid fraud by ensuring that credit is extended to a person whose credibility as a borrower has been established.
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Although the response by the author presents key points about the management of accounts receivable that when taken into consideration can help in fraud prevention, further development of the points would make them more concrete. Besides, additional care taken on writing semantics would help in conveying the message better.
References
Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2010). Financial accounting: tools for business decision making . John Wiley & Sons.
Iuga, C. V. (2016). Risks in the Enforcement of Assignment of Claim Arising from a Bank Loan Agreement. " Perspectives of Business Law" Journal , 5 (1), 47.
