Answers choices for each question are: Documentation Procedures/Independent Inte

Question

Answers choices for each question are:

Documentation Procedures/Independent Internal Verification/Establishment of Responsibility/ Segregation of Duties/ Physical Controls / Human Resource Controls

.

1.

1. Company checks are prenumbered. 2. The bank statement is reconciled monthly by an internal auditor. 3. Blank checks are stored in a safe in the treasurer’s office. 4. Only the treasurer or assistant treasurer may sign checks.

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5. Check-signers are not allowed to record cash disbursement transactions.

1.

All over-the-counter receipts are entered in cash registers. 2. All cashiers are bonded. 3. Daily cash counts are made by cashier department supervisors. 4. The duties of receiving cash, recording cash, and custody of cash are assigned to different individuals. 5. Only cashiers may operate cash registers.

Explanation / Answer

1

Company checks are pre-numbered.

Documentation procedures

2

The bank statement is reconciled monthly by an internal auditor.

Independent internal verification

3

Blank checks are stored in a safe in the treasurer’s office.

Physical controls

4

Only the treasurer or assistant treasurer may sign checks.

Establishment of responsibility

  5.

Check-signers are not allowed to record cash disbursement transactions.

Segregation of duties

1

All over-the-counter receipts are entered in cash registers.

Physical controls

2

All cashiers are bonded.

Human resource controls

3

Daily cash counts are made by cashier department supervisors.

Independent internal verification

4

The duties of receiving cash, recording cash, and custody of cash are assigned to different individuals.

Segregation of duties

5

Only cashiers may operate cash registers.

Establishment of responsibility

1

Company checks are pre-numbered.

Documentation procedures

2

The bank statement is reconciled monthly by an internal auditor.

Independent internal verification

3

Blank checks are stored in a safe in the treasurer’s office.

Physical controls

4

Only the treasurer or assistant treasurer may sign checks.

Establishment of responsibility

  5.

Check-signers are not allowed to record cash disbursement transactions.

Segregation of duties

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