Rolling Hills Ltd. has the following internal controls over cash payments. Identify the control activity that is applicable to eachprocedure.1.2.3.4.5.6.Company cheques are prenumbered.The bank statement is reconciled monthly by the assistant controller.Blank cheques are stored in a safe in the controller's office.Both the controller and the assistant controller are required to sign cheques or authorizeelectronic payments.Cheque signers are not allowed to record cash payments.All payments are made by cheque or electronic transfer.Assignment of responsibilityReview and reconciliationSegregation of dutiesPhysical controlsDocumentation

1. Company cheques are pre-numbered. - Documentation 2. The bank statement is reconciled monthly by…

Answered: Rolling Hills Ltd. has the following…

Rolling Hills Ltd. has the following internal controls over cash payments. Identify the control activity that is applicable to each procedure.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Rolling Hills Ltd. has the following internal controls over cash payments. Identify the control activity that is applicable to each
procedure.
1.
2.
3.
4.
5.
6.
Company cheques are prenumbered.
The bank statement is reconciled monthly by the assistant controller.
Blank cheques are stored in a safe in the controller's office.
Both the controller and the assistant controller are required to sign cheques or authorize
electronic payments.
Cheque signers are not allowed to record cash payments.
All payments are made by cheque or electronic transfer.
Assignment of responsibility
Review and reconciliation
Segregation of duties
Physical controls
Documentation

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