Question

For effective internal control, the billing function should not be performed by the:

1) Sales department.
2) Accounting department.
3) Finance department.
4) Information Processing department.

Answer 1

The billing function should not be performed by the sales department. The accounting department is responsible for accurate recording and reporting of financial transactions.

Step-by-step explanation:

For effective internal control, the billing function should not be performed by the sales department. It is important to separate the responsibilities of the sales department from those involved in billing to prevent any potential conflicts of interest or fraudulent activities. The accounting department, on the other hand, plays a vital role in the billing function as it ensures accurate recording and reporting of financial transactions.

The finance department also plays a role in managing billing by overseeing the overall financial operations of the organization. The information processing department may handle the technical aspects of billing, such as generating invoices and managing customer data, but it should not have sole responsibility for the billing process.