Question

To achieve good internal control, which department should perform the activities of matching shipping documents with sales orders and preparing daily sales summaries?

a. Billing.
b. Shipping.
c. Credit.
d. Sales Order.

Answer 1

The Billing department should handle the matching of shipping documents with sales orders and the preparation of daily sales summaries to ensure good internal control.

Step-by-step explanation:

To achieve good internal control, the department responsible for matching shipping documents with sales orders and preparing daily sales summaries should be the Billing department. The separation of these activities from the Sales Order and Shipping departments helps to prevent errors and potential fraud by establishing checks and balances within the organization. The Credit department is generally tasked with assessing customer creditworthiness and setting credit limits, thus it is not directly involved in the day-to-day sales transaction documentation process. The goal of this separation is to ensure that the processing of transactions is accurate and that assets are safeguarded.