An internal control dictates that prices on sales invoices are verified with a standard price list by client personnel. Which of the following procedures provides the greatest assurance that this control is operating effectively?
A) Examining the invoices for signatures
B) Inquiry
C) Reperformance
D) Observation

Question

Quizplus · Accepted Answer

Reperformance involves independently re-performing a control procedure that has already been performed by client personnel. This provides the greatest level of assurance that the control is operating effectively as it involves independent verification of the prices on the invoices. Examining invoices for signatures, inquiry, and observation are all less effective procedures as they do not involve independent verification of the control.

An Internal Control Dictates That Prices on Sales Invoices Are