To determine whether the system of internal control operated effectively to minimize errors of failure to invoice a shipment, the auditor would select a sample of transactions from the population represented by the
A) Customer order file.
B) Bills of lading file.
C) Open invoice file.
D) Sales invoice file.

Question

Quizplus · Accepted Answer

The auditor would select a sample from the bills of lading file because it represents shipments made. By verifying that each shipment has a corresponding invoice, the auditor can assess whether the internal controls are effective in ensuring all shipments are invoiced.

To Determine Whether the System of Internal Control Operated Effectively