Which of the following is a control related to design and use of documents and records?
A) locking blank checks in a drawer or safe
B) sequentially prenumbering sales invoices
C) reconciling the bank statement to the general ledger
D) comparing physical inventory counts with perpetual inventory records

Question

Quizplus · Accepted Answer

Sequentially prenumbering sales invoices helps ensure that all sales transactions are accounted for and reduces the risk of sales being omitted or recorded multiple times. This is a control related to the design and use of documents and records.

One could argue that option A is also a control related to the design and use of documents and records in that it restricts access to blank checks, but it is more of a physical security control. Option C is a control related to the accuracy of financial statements, and option D is a control related to inventory management.

Which of the Following Is a Control Related to Design