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)subsidiary customer accounts ledger.
B)sales invoice file.
C)bill of lading file.
D)customer order file.

Question

Quizplus · Accepted Answer

The bill of lading file is used to verify that shipments have been invoiced, as it contains records of goods shipped. By sampling from this file, the auditor can check if all shipments have corresponding invoices, thus assessing the effectiveness of internal controls in minimizing invoicing errors.

To Determine Whether the Internal Control Structure Policies and Procedures