Audit and Assurance Practice Exam

Which control over sales transactions helps assess whether transactions are recorded correctly?

1. Documenting serial numbers

2. Distributing monthly statements

3. Data encryption techniques

4. Customer satisfaction surveys

The correct answer is: Distributing monthly statements

Distributing monthly statements directly supports the assessment of whether sales transactions are recorded accurately. When customers receive monthly statements that outline their transactions, they have the opportunity to review the details of their purchases—such as amounts, dates, and items purchased. This process serves as a check against the sales records maintained by the business, allowing discrepancies to be identified and resolved promptly. It reinforces accountability and accuracy in the accounting system, as customers are likely to report any irregularities they notice, which can then be investigated further. In contrast, documenting serial numbers primarily aids in tracking inventory and preventing theft, but it doesn’t provide a means for verifying the correctness of recorded sales transactions. Data encryption techniques are important for protecting sensitive information during transmission and storage, but they do not contribute to the validation of transaction accuracy. Customer satisfaction surveys can provide insights into the customers' perception of service but do not directly impact the accuracy of financial records. Thus, the role of distributing monthly statements is significant in ensuring that recorded transactions reflect the true business activity that took place.