Which of the following procedures most likely would not be an internal control activity designed to reduce the risk of errors in the billing process?
A)Comparing control totals for shipping documents with corresponding totals for sales invoices.
B)Using computer programmed controls on the pricing and mathematical accuracy of sales invoices.
C)Matching shipping documents with approved sales orders before invoice preparation.
D)Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger.

Question

Quizplus · Accepted Answer

Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger is more of a detective control rather than a preventive control. It is designed to identify errors after they have occurred, rather than preventing errors in the billing process. Choices A, B, and C are preventive controls aimed at reducing the risk of errors before they happen.

Which of the Following Procedures Most Likely Would Not Be