Which of the following procedures most likely represents an internal control designed to reduce the risk...
Which of the following procedures most likely represents an internal control designed to reduce the risk of errors in the billing process?
1.
Requiring customers that purchase on account to be approved by the credit department.
2.
Comparing control totals for shipping documents with corresponding totals for sales invoices.
3.
Matching receiving documents with approved sales orders before invoice preparation.
4.
Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger.
Homework Answers
| Option 2 is the answer | |
| Accounting for differences if any, between the control totals for shipping documents and total sales invoices will reduce the risk of errors in billing process |
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