To Determine Whether Internal Control Structure Policies and Procedures Operated

question 35

Multiple Choice

To determine whether internal control structure policies and procedures operated effectively to minimise errors of failure to invoice a shipment, the auditor would select a sample of transactions from the population represented by the:

• A)bill of lading file.
• B)customer order file.
• C)accounts receivable master file.
• D)goods received notes file.

---

Definitions:

Dividend Payout Ratio

A financial ratio that indicates the percentage of a company's earnings paid to shareholders in the form of dividends.

Net Income

The total earnings of a company after subtracting all expenses from revenue, also known as the bottom line.

Constant Percentage

A fixed proportion or rate that is applied to a specific calculation, such as in investment strategies or financial formulas.

Tax Rate

The percentage at which an individual or corporation is taxed, often varying based on income or profit levels.