Question

Tracing the prices used by the entity's billing program for pricing sales invoices to the entity's approved price list.

a) Price Matching Examination
b) Billing Program Validation
c) Price Tracing Test
d) Invoice Price Verification

Answer 1

The correct term for the process of tracing prices from a billing program to an approved price list is a 'Price Tracing Test', which ensures billing accuracy.

Step-by-step explanation:

The task of tracing the prices used by an entity's billing program to the entity's approved price list refers to the process of verifying that the sales invoices are correctly priced in accordance with the approved pricing structure of a company. This is done to ensure that the billing process is accurate and to prevent errors or fraud. The correct term for this procedure is c) Price Tracing Test. This is part of internal controls or an audit process to confirm that transactions are being recorded at the correct amounts.