ACCA AA · Chapter 8 · Question 5 of 12
Which control most directly helps to ensure that all goods dispatched to customers are invoiced?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Sequentially numbered goods dispatched notes are matched to sales invoices and gaps in the sequence are investigated
Explanation
Matching sequentially numbered dispatch notes to invoices, with follow-up of any missing numbers, identifies goods that have left the premises without being billed, addressing completeness of revenue. Authorisation and price lists address accuracy and validity, and customer statements mainly detect overcharging or misallocated cash.
More Internal control systems MCQs
- Q7Which control would best prevent fictitious employees from being added to the payroll?
- Q8Which of the following controls would be most effective in reducing the risk of theft of high-value inventory from a warehouse?
- Q9Which of the following bank reconciliation procedures represents the strongest control?
- Q10Under ISA 265, how must the auditor communicate significant deficiencies in internal control identified during the audit?
- Q11Which of the following is a test of controls rather than a substantive procedure?