Prenumbered documents will only be useful for control purposes if:

Tests of controls and substantive tests of transactions for the sales and collection cycle can affect the balances in accounts receivable, cash, bad debt expense, and allowance for doubtful accounts.  Here are some tests of controls and substantive tests of transactions for cash receipts: Determine whether cash received was recorded, Prepare proof of cash receipts, and Test to discover lapping of accounts receivable.  Here are some substantive tests of transactions: Recalculate information in the accounting records Compare prices on duplicate sales invoices with an approved price... Show more

Tests of controls and substantive tests of transactions for the sales and collection cycle can affect the balances in accounts receivable, cash, bad debt expense, and allowance for doubtful accounts. 

Here are some tests of controls and substantive tests of transactions for cash receipts: Determine whether cash received was recorded, Prepare proof of cash receipts, and Test to discover lapping of accounts receivable. 

Here are some substantive tests of transactions:
Recalculate information in the accounting records
Compare prices on duplicate sales invoices with an approved price list
Recalculate extensions and footings
Compare the details on the invoices with shipping 

Here are some internal controls over the sales cycle: numbered sales invoices, purchase order authorization over a certain limit, and authorization over receivables write-offs. 

Here are some important aspects of billing:
All shipments made have been billed
No shipment has been billed more than once
Each one is billed for the proper amount 

Auditors only perform tests of control when they believe that the control risk is low. The goal of these tests is to determine if the internal controls are sufficient to prevent or detect risks of material misstatements.

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