Final answer:
The correct answer is option A. The Billing department should perform the activities of matching shipping documents with sales orders to ensure good internal control, as it is responsible for the accurate billing process and reducing conflicts of interest.
Step-by-step explanation:
To achieve good internal control, the activities of matching shipping documents with sales orders should be performed by the Billing department. Internal control systems are designed to ensure accuracy and integrity in the financial processes of an organization. Segregation of duties is a key principle of internal control which means that no single employee or department should be in a position to both execute and reconcile a transaction because this could lead to errors or fraud.
Therefore, the Billing department is the appropriate department to perform the task of matching shipping documents with sales orders. This is because the Billing department is responsible for issuing invoices and ensuring that the sales recorded are for goods that have been shipped. By matching the shipping documents with the sales orders, the Billing department can confirm that customers are billed correctly for the items they received, and that sales are recognized in accordance with the delivery of goods.
The Shipping department is responsible for sending out the products but should not be involved in the financial recording of the sale to prevent a conflict of interest. The Credit department usually manages the customer's creditworthiness and is not directly involved in the shipping or billing process. The Sales Order department, which may handle the creation of sales orders, should also be separate from billing and shipping to maintain proper internal control. The correct option, in this case, is the Billing department.