ICAEW ARF · Chapter 4 · Question 6 of 12
A computerised sales system performs a sequence check on sales invoice numbers. What is the main purpose of this control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To identify missing or duplicated invoice numbers, supporting the completeness of recorded sales
Explanation
A sequence check looks for gaps and duplicates in a numbered sequence, so it helps ensure that every invoice raised is recorded once only. Pricing accuracy relies on controls over price lists, credit risk is controlled by credit checks, and correct posting is supported by controls such as check digits on account codes.
More Internal control systems and IT controls MCQs
- Q8Which of the following is a test of control?
- Q9How should an auditor communicate significant deficiencies in internal control identified during an audit?
- Q10Which of the following would NOT normally be included in an auditor's report to management on internal control deficiencies?
- Q11Which of the following controls best prevents unauthorised changes being made to a company's accounting software?
- Q12What is the main purpose of a walk-through test?