Question

(TCO H) One objective of an audit of a water utility for a small city is...

(TCO H) One objective of an audit of a water utility for a small city is to determine whether all customers are being billed. Select the best direction of testing from the options below and explain why you selected that option.
       (a) Meter department records to the sales register
       (b) Sales register to the meter department records.
       (c) Accounts receivable ledger to the sales register
       (d) Sales register to the accounts receivable ledger

Homework Answers

Answer #1

The best direction for audit of a water utility is option a = Meter department records to te sales register

This is becasue the meter department is a one control point for all connection given of water utility. If there is water connection it meand there is meter available for that and reading will be taken by the meter department and when we compare with meter to sales register than we get the exact and correct picture of sales and if any sales is not recorded than we can identify the easily of that.

So, Answer = Option A =   Meter department records to the sales register

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