Which of the Following Procedures Most Likely Would Not Be

question 29

Multiple Choice

Which of the following procedures most likely would not be an internal control activity designed to reduce the risk of errors in the billing process?

• A)Comparing control totals for shipping documents with corresponding totals for sales invoices.
• B)Using computer programmed controls on the pricing and mathematical accuracy of sales invoices.
• C)Matching shipping documents with approved sales orders before invoice preparation.
• D)Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger.

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Definitions:

Foreign Subsidiary

A company that is owned or controlled by another company but is located and operates in a country other than the one where the parent company resides.

Functional Currency

The money used in the main economic area where a business functions and produces cash inflows.

Bonds Payable

Long-term liabilities representing money owed by an entity to bondholders, to be repaid at a future date with interest.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and finance operations.