To determine whether the internal control structure policies and procedures operate effectively to minimise errors of failure to invoice a shipment, the auditor would select a sample of transactions from the population represented by the:
A) bill of lading file.
B) customer order file.
C) sales invoice file.
D) subsidiary customer accounts ledger.

Question

Quizplus · Accepted Answer

The bill of lading file is the correct choice because it contains the records of shipments made. By comparing these records to invoices, an auditor can determine if there were any shipments that were not invoiced, thus assessing the effectiveness of internal controls over the invoicing process.

To Determine Whether the Internal Control Structure Policies and Procedures