Tott Company has the following internal control procedures over cash disbursements. Identify the internal control principle that
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Question:
Tott Company has the following internal control procedures over cash disbursements.
Identify the internal control principle that is applicable to each procedure.
(a) | Company checks are prenumbered. | Select the principle of internal control | ||
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(b) | The bank statement is reconciled monthly by an internal auditor. | Select the principle of internal control | ||
(c) | Blank checks are stored in a safe in the treasurer’s office. | Select the principle of internal control | ||
(d) | Only the treasurer or assistant treasurer may sign checks. | Select the principle of internal control | ||
(e) | Check-signers are not allowed to record cash disbursement transactions. | Select the principle of internal control |
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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