To determine whether internal control structure policies and procedures operated 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)accounts receivable master file.
D)goods received notes file.

Question

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The bill of lading file includes information about shipments made by the company, including invoice information. Therefore, selecting a sample of transactions from this file would allow the auditor to determine whether internal control structure policies and procedures operated effectively to minimise errors of failure to invoice a shipment. The customer order file, accounts receivable master file, and goods received notes file may not include all the necessary information to evaluate this control.

To Determine Whether Internal Control Structure Policies and Procedures Operated