Which of the following is not a reason why paying by check is an important internal control?A. The check must be signed by an authorized official.B. The check provides a record of the payment.○ C. Before signing the check, the purchasing agent reviews the invoice or other evidence supporting the payment.OD. All of the above statements are correct.

Approach to solving the question: Analyze the question. Detailed explanation:All the given…

Answered: Which of the following is not a reason…

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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Similar questions

To gather audit evidence related to accounts receivable, the client should mail the confirmation requests. TRUE OR FALSE? WHY?
Which of the following should be included as part of outstanding checks in preparing bank reconciliation? i. Undelivered checks; ii. Post-dated checks; iii. Stale checks a.i and ii b.i and iii c.ii and iii d.None of the above
A restrictive check endorsement includes which of the following: The words "Pay to the order of" and a signature The words "For deposit only" and a signature Just a signature none of these
Describe the difference between keeping a check stub record of checks written versus a check register
The following are key controls over the purchasing and disbursement cycle except: A. Proper authorization of purchases B.Timely recording of transactions including independent review C. Proper authorization of disbursement D. Segregation of duties between the credit department and custody
Which internal control activity is being violated when the cashier in a retail store also records the daily receipts in a journal? adequate documents and records safeguards over assets and records independent checks on recorded amounts segregation of duties
Distinguish among the following: (1) a general checkingaccount, (2) an imprest bank account, and (3) a lockboxaccount.
What is a check and who are the parties involved in the issuance of a check? Discuss the role of each party
What internal control technique (s) would protect you against the hazards listed below? To hide the theft of further cash payments from that client, an employee writes down a customer's accounts receivable amount as uncollectible.
A common audit procedure to verify the existence assertion of cash account balances is: a. examining evidence over the authorization of cash disbursement b. examining evidence of the separation of duties between the receipts of cash payments and posting to the accounts receivable subsidiary records c. Standard Bank Confirmation form d. none of these
Which of the following reflects a weak internal control system? Please explain with full explanation. a. All employees are well supervised. b. A single employee is responsible for comparing a receiving report to an invoice. c. All employees must take their vacations. d. A single employee is responsible for collecting and recording cash.
The following can be appropriately included in an Internal Control Questionnaire for Revenue/Receipt Cycle, except *A. Is the credit department independent of the sales department?B. Are debit or credit memos independently checked against sales invoice data?C. Are accounts receivable periodically reviewed and aged?D. Does the cashier compare the official receipt, deposit slip, and cash receipts journal?E. None of them

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