An important control for sales on account is that the client mathematically verifies all sales invoices.Which of the following would be the most appropriate population from which to select sample items?
A) Entries in the general journal.
B) Entries in the sales journal.
C) Sales invoices.
D) Shipping documents.

Question

Quizplus · Accepted Answer

The sales invoices are the most appropriate population to select sample items for verifying sales on account, as they contain the details of the sale transaction, including the amount billed and payment terms. Selecting a sample of sales invoices allows for a direct verification of the accuracy of the sales figures recorded in the accounts receivable ledger. The other options (entries in the general journal, entries in the sales journal, and shipping documents) do not necessarily contain all the relevant information needed to verify sales on account.

An Important Control for Sales on Account Is That the Client