An internal control dictates that prices on sales invoices are verified with a standard price list by client personnel.Which of the following procedures provides the greatest assurance that this control is operating effectively?
A) reperformance
B) inquiry
C) examining the invoices for signatures
D) observation

Question

Quizplus · Accepted Answer

Reperformance provides the greatest assurance that the control is operating effectively because it involves the auditor independently executing the control procedures (in this case, verifying prices on sales invoices with a standard price list) to ensure they are being performed correctly by the client's personnel.

An Internal Control Dictates That Prices on Sales Invoices Are