Solved

Match the Internal Control Principle Below with the Appropriate Cash

Question 175

Matching

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

Premises:

Responses:

Treasurer compares total receipts to bank deposits daily.

Establishment of responsibility

Only designated personnel are authorized to handle cash receipts.

Physical controls

Use remittance advice and cash register tapes.

Documentation procedures

Different individuals receive cash and record cash receipts.

Segregation of duties

Bonding of employees that handle cash.

Human resource controls

Store cash in safes and bank vaults.

Independent internal verification

Premises:

Treasurer compares total receipts to bank deposits daily.

Only designated personnel are authorized to handle cash receipts.

Use remittance advice and cash register tapes.

Different individuals receive cash and record cash receipts.

Bonding of employees that handle cash.

Store cash in safes and bank vaults.

Responses:

Establishment of responsibility

Physical controls

Documentation procedures

Segregation of duties

Human resource controls

Independent internal verification

Correct Answer:

Premises:

Responses:

Treasurer compares total receipts to bank deposits daily.

Only designated personnel are authorized to handle cash receipts.

Use remittance advice and cash register tapes.

Different individuals receive cash and record cash receipts.

Bonding of employees that handle cash.

Store cash in safes and bank vaults.