Question

Which of the following procedures most likely would not be an internal control activity designed to reduce the risk of errors in the billing process?

a. Comparing control totals for shipping documents with corresponding totals for sales invoices.
b. Using computer programmed controls on the pricing and mathematical accuracy of sales invoices.
c. Matching shipping documents with approved sales orders before invoice preparation.
d. Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger.

Answer 1

The most likely procedure that would not be an internal control activity to reduce the risk of errors in the billing process.

Step-by-step explanation:

The correct answer is d. Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger. This is because reconciling the control totals with the subsidiary ledger is a process of ensuring that the totals match and it doesn't directly reduce the risk of errors in the billing process. It is more of a verification step rather than an internal control. The other options, a, b, and c, are all internal control activities that help reduce the risk of errors in the billing process.