Question

To determine whether the system of internal control operated effectively to minimize errors of failure to invoice a shipment, the auditor would select a sample of transactions from the population represented by the:

A) customer order file.
B) bills of lading file.
C) open invoice file.
D) sales invoice file.

Answer 1

The auditor would select a sample of transactions from the sales invoice file to determine the effectiveness of the internal control system in minimizing errors of failure to invoice a shipment. Thus, the correct option is D.

Step-by-step explanation:

The answer is D) sales invoice file. To determine whether the system of internal control operated effectively to minimize errors of failure to invoice a shipment, the auditor would select a sample of transactions from the sales invoice file. This file contains the actual invoices generated for each shipment, and reviewing a sample of these invoices allows the auditor to assess whether any errors or omissions occurred in the invoicing process.