Which of the following would be an effective internal control procedure over cas

Question

Which of the following would be an effective internal control procedure over cash? Having the person who receives mailed-in cheques be different than the record keeper. Having only one person responsible for writing and signing all cheques. Having one person responsible for all cash handling activities and the inventory. Having many people handle the cash activities in a store and all work out of the same cash register drawer. Which of the following would be an effective internal control procedure over cash? Having the person who receives mailed-in cheques be different than the record keeper. Having only one person responsible for writing and signing all cheques. Having one person responsible for all cash handling activities and the inventory. Having many people handle the cash activities in a store and all work out of the same cash register drawer. Which of the following would be an effective internal control procedure over cash? Having the person who receives mailed-in cheques be different than the record keeper. Having only one person responsible for writing and signing all cheques. Having one person responsible for all cash handling activities and the inventory. Having many people handle the cash activities in a store and all work out of the same cash register drawer.

Explanation / Answer

in my view Having many people handle the cash activities in a store and all work out of the same cash register drawer is the best internal control procedure....

, no single person has control over the entire cash process.but having one person who receives mailed in cheques be different then the record keeper is more ecomomical for small business.but this leads to manpulation.

One of the most important steps your unit can take to protect cash — and you — is to separate cash handling duties among different people. With proper separation of duties, no single person has control over the entire cash process.

Note: The key to effective cash control while separating duties is to minimize the number of people who actually handle cash before it's deposited.

for big organizations there should be seperation of duties for different people for record receive reconcile and to accountable ,authorize and approval

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