Read the following statements about internal controls. Write down the number of each statement and whether the statement is true or false. If a statement is false, explain why. 1. Internal controls are not required when payments are made by cheque. 2. All payments should be made by cheque, except for petty cash payments. 3. A good internal control procedure is where the same person is responsible for paying all accounts, writing all cheques and signing all cheques. In order to be efficient, all emplo 4.

What types of controls should be in place to make sure people in the office don't just take from petty cash (for their own personal use) whenever they feel like it? In your opinion, what is an appropriate amount to have in petty cash?

Which of the following statements are true regarding the control of cash receipts and cash payments? One key to controlling cash payments is to require that no expenditures be made by check; instead, all expenditures should be made from petty cash.

Which internal control activity is being violated when the cashier in a retail store also records the daily receipts in a journal? adequate documents and records safeguards over assets and records independent checks on recorded amounts segregation of duties

A lockbox plan is   a. used to speed up the collection of checks received.     b. used to protect cash, i.e., to keep it from being stolen.     c. used primarily by firms where currency is used frequently in transactions, such as fast food restaurants, and less frequently by firms that receive payments as checks.     d. used to identify inventory safety stocks.     e. used to slow down the collection of checks our firm writes.

Which of the following reflects a weak internal control system? Please explain with full explanation.  a. All employees are well supervised. b. A single employee is responsible for comparing a receiving report to an invoice. c. All employees must take their vacations. d. A single employee is responsible for collecting and recording cash.

Which of the following is not a reason why paying by check is an important internal control? A. The check must be signed by an authorized official. B. The check provides a record of the payment. ○ C. Before signing the check, the purchasing agent reviews the invoice or other evidence supporting the payment. OD. All of the above statements are correct.

An accounting manager, who has full access to a Company’s accounting system also has access to the bank account and is able to send cash payments without supervision. What is an internal control that should be implemented to reduce the risk of theft or fraud in this company?

In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also: A. Approves the voucher for payment. C B. C. D. Stamps, perforates or otherwise cancels supporting documents. Returns the checks to accounts payable. Is denied access to the supporting documents.

What are the three different types of Check Fraud.What steps could you take to protect your customer and the bank from check fraud?