[YBD215]

The answer to this question doesn’t make sense to me

Question:

To determine whether internal control relative to the revenue cycle of a wholesaling entity is operating effectively in minimizing the failure to prepare sales invoices, an auditor most likely would select a sample of transactions from the population represented by the:

a. Sales order file.

b. Shipping document file.

c. Customer order file.

d. Sales invoice file.

Explanation

Choice “b” is correct. Shipping documents provide evidence that a sale occurred, and therefore selecting from a population of shipping documents allows the auditor to test whether corresponding invoices exist for each sale.

If the question is “operating effectively in minimizing the failure to prepare sales invoices” Wouldn’t you check from sale to the corresponding invoice? Wouldn’t this test be more about if the Shipment is valid? I am Lost

AUD - 90
BEC - 78
FAR - 82
REG - 75

If 72 was passing, I would be 3 CPA's right now!!