Final answer:
The control independent billing authorization ensures that bills reflect goods or services actually ordered by the customer and bear the authorized prices, contributing to accurate and fraud-preventive billing practices.
Step-by-step explanation:
The control independent billing authorization is a mechanism in business processes that ensures accuracy and integrity in the billing function. Specifically, it concerns itself with the verification that bills:
- are for goods actually ordered by the customer,
- have authorized prices,
- are for goods that were picked in the warehouse,
- are accurate.
While all these are important, the control independent billing authorization primarily ensures that bills reflect goods or services that have actually been ordered by the customer and that the prices on these bills have been properly authorized, typically per the agreement or contract terms. This control helps prevent errors and fraudulent billing practices, contributing to effective financial management within an organization.