Question

Which of the following controls requires that documents be numbered sequentially or prenumbered before it can be implemented?

1) completeness check
2) sequence check
3) batch total matching
4) key verification

Answer 1

The control that necessitates the use of sequentially or prenumbered documents is a sequence check. It ensures the detection of missing or duplicate entries within a sequence of documents, such as invoices or checks.

Step-by-step explanation:

The control that requires documents to be numbered sequentially or prenumbered before it can be implemented is known as a sequence check. This control is vital for detecting missing or duplicate transactions in a dataset. For example, if an organization issues invoices, a sequence check ensures that each invoice has a unique number and that all invoices are accounted for in sequential order. If invoice number 105 is missing from the sequence, the sequence check will flag this as a potential issue for investigation.