The voucher system of control: Multiple Choice Establishes procedures for receiving checks for the sale of verified, approved, and recorded activities. Establishes procedures for verifying, approving, and recording liabilities for cash payment. Applies only when multiple purchases are made from the same supplier. Is a set of procedures and approvals designed to control cash receipts and the acceptance of liabilities. Is required in large companies but not beneficial for small to mid-sized companies.

The voucher system of control: Multiple Choice Establishes procedures for receiving checks for the sale of verified, approved, and recorded activities. Establishes procedures for verifying, approving, and recording liabilities for cash payment. Applies only when multiple purchases are made from the same supplier. Is a set of procedures and approvals designed to control cash receipts and the acceptance of liabilities. Is required in large companies but not beneficial for small to mid-sized companies.

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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An accounting manager, who has full access to a Company’s accounting system also has access to the bank account and is able to send cash payments without supervision. What is an internal control that should be implemented to reduce the risk of theft or fraud in this company?
To enhance internal control in the bank reconciliation process, the bank reconciliation should be prepared O a. with the assistance of the bank's employees. O b. by the supervisor. O c. entirely within the computerized accounting system. O d. by an employee who does not take part in or record cash transactions.
E8B. ACCOUNTING CONNECTION Developing a convenient means of reimbursing sales representatives with cash for their incidental expenses, such as for meals and supplies, is a problem many companies face. Under one company's plan, the sales representatives submit the receipts for reimbursement to the petty cash custodian. The representative then receives cash from the petty cash fund. What is the weak point in this system? What fundamental principle of internal con- trol is being ignored? What improvement in the procedure can you suggest?
Whole Fruits Market took the following actions to improve internal controls. For each of the following actions, select the internal control principle the company followed. a. Personal ID cards are used to limit access to only authorized employees. b. The company divides responsibility for a transaction between multiple departments. c. Each cashier is designated a specific cash drawer and is solely responsible for cash in that drawer. d. Purchased an insurance (bonding) policy against losses from theft by a cashier. e. To ensure equipment theft does not go undetected, detailed accounting records are kept. f. The company's internal auditors frequently assess the performance of internal controls.