Answered: Explain why each of the following…

Explain why each of the following combinations of tasks should, or should not, be separated to achieve adequate internal control.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 5MC: There are several elements to internal controls. Which of the following would not address the issue...

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1. Segregation of Duties. Explain why each of the following combinations of tasks should, or should not, be separated to achieve adequate internal control.

a. Approval of bad debt write-offs and the reconciliation of the accounts receivable subsidiary ledger and the general ledger control account.

b. Distribution of payroll checks to employees and approval of employee time cards.

c. Posting of amounts from both the cash receipts and the cash disbursements journals to the general ledger.

d. Writing checks to vendors and posting to the cash account.

e. Recording cash receipts in the journal and preparing the bank reconciliation.

Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.

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