Control Procedures to Prevent Any Misappropriation and Irregularities in the Cash

Multiple Choice

Control procedures to prevent any misappropriation and irregularities in the cash disbursements process include the following except:

A) Whenever possible, to minimize bank transaction fees, most disbursements should be made in the form of cash such as payments from petty cash, coin and currency.
B) All cash disbursements, except for immaterial payments made from petty cash, must be made by check.
C) Authorization is required for all cash disbursements prior to preparing a check.
D) The person preparing the check to pay an invoice must have all the appropriate documentation, including the vendor invoice; the approved purchase order; and the receiving report.