34.A good internal control system provides for a. allowing one person to receive cash and to record cash receipts b. delaying the deposit of cash collections because no one knows for sure the account to be credited c. making payments from the day's collections d. preparing regular bank reconciliation

Describe the nature of a bank account and its use in controlling cash. A major reason that companies use bank accounts is for internal control. Some of the control advantages of using bank accounts are as follows: 1. Bank accounts reduce the amount of cash on hand. 2. Bank accounts provide an independent recording of cash transactions. Reconciling the balance of the cash account in the company's records with the cash balance according to the bank is an important control. 3. Use of bank accounts facilitates the transfer of funds using EFT systems. DELL

Indicate whether the following statements are true or false. A guideline for safeguarding cash is to separate the duties of those who have custody of cash from this who keep cash records. Choose... + A guideline for safeguarding cash is that all cash receipts be deposited monthly or yearly. Choose... Separation of duties eliminates the possibility of collusion to steal an asset and hide the theft from the records. Choose... + A voucher system of control is a control system exclusively for cash receipts Choose...

Which of the following does not show good cash management regarding the controls over cash disbursements? Use a petty cash fund to make only small expenditures. Make all major disbursements by check. Combine the handling of receiving bills, writing checks, and signing checks to one person. Prepare bank reconciliations in a timely manner. All the above shows good cash management controls over cash disbursements. A. В. C. D. E.

The following are deficiencies in internal controls over cash. a. When the cashier isn't available, Amy prepares both the deposit and opens the mail. b. The mail clerk may not prepare remittance advice for the A/R department if a customer does not submit a one with payment. c. Sometimes, the treasurer's department does not stop the supporting documents for cash disbursements. d. John handles both the customer correspondence concerning monthly statements and making the bank deposits. e. Mike handles incoming mail and also prepares bank reconciliations; however, the bank reconciliations are not done in a timely manner. For each deficiency: Determine what applicable audit procedure(s) should be conducted to identify whether any material misstatements exist Explain why you think this procedure is best for this situation. Consider each deficiency independently of the others. While each deficiency presents potential issues, identify two that stand out as the worse with your professional…

Which of the following is an effective internal control for cash payments? A.Payments should be authorised before they are made B.Payments to suppliers should be made as quickly as possible C.An experienced accountant should have total responsibility for all cash payment functions D.Supporting documentation should be destroyed immediately afterpayment to avoid incorrectly paying twice

Assess the following statement as true or false. Enter T for true or F for false. 1. 2. 3. 4. Bank reconciliation is one of documentation procedure control. A cash budget contributes to more effective internal control. of segregation of duties. 5. to apply. Allow only one check signer has access to cash recording is an example The assumption of inventory method (i.e. FIFO etc.) may not match the physical flow of goods. Technology has make the perpetual inventory more popular and easier

Review the following statements regarding a petty cash fund used in a business. Select the one that is correct. O A petty cash fund is controlled by top management. O The cashier of a fund will write checks for small payments like postage, supplies and deliveries, O Only the petty cashier is responsible for paying cash from the fund. OA check written against the fund is cashed when the fund is replenished.