Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 219

Which of the following is not an appropriate control related to sales in a manufacturing company?

Answer options

• A. Customers' orders are recorded promptly.
• B. Goods shipped are matched with valid customer orders.
• C. Goods returned are inspected for damage by the sales department and then entered into inventory.
• D. Credit department approval is required for credit sales transactions.

Correct answer: C

Explanation

Option C is incorrect because the sales department should not be responsible for inspecting returned goods; this task is typically handled by a returns processing department. Options A, B, and D are all appropriate controls that help ensure accurate order processing and credit management.