To determine whether the system of internal control operated effectively to minimize errors of failure to invoice a shipment, the auditor would select a sample of transactions from the population represented by the:
A)customer order file.
B)bills of lading file.
C)open invoice file.
D)sales invoice file.

Question

Quizplus · Accepted Answer

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

To Determine Whether the System of Internal Control Operated Effectively