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Match the Internal Control Principle Below with the Appropriate Cash

Question 48

Matching

Match the internal control principle below with the appropriate cash disbursements procedure described.

Premises:

Responses:

Each check must have approved invoice.

Establishment of responsibility

Requiring employees to take vacations.

Independent internal verification

Different individuals approve and make payments.

Segregation of duties

Compare checks to invoices.

Human resource controls

Print check amounts by machine with indelible ink.

Physical controls

Only designated personnel are authorized to sign checks.

Documentation proce dures

Premises:

Each check must have approved invoice.

Requiring employees to take vacations.

Different individuals approve and make payments.

Compare checks to invoices.

Print check amounts by machine with indelible ink.

Only designated personnel are authorized to sign checks.

Responses:

Establishment of responsibility

Independent internal verification

Segregation of duties

Human resource controls

Physical controls

Documentation proce dures

Correct Answer:

Premises:

Responses:

Each check must have approved invoice.

Requiring employees to take vacations.

Different individuals approve and make payments.

Compare checks to invoices.

Print check amounts by machine with indelible ink.

Only designated personnel are authorized to sign checks.