Which of the following statements is not a good internal control for petty cash. a. The officer in charge of petty cash may have access to other company funds b.Petty cash should be maintained on an imprest basis c.All petty cash payment must be properly authorized by a responsible person and must be in accordance with laid down policies d.Petty cash reimbursement should be made only after the petty cashier has properly accounted for all payments made during the period e.g. by supporting documents to duly authorized petty cash voucher e.There should be a surprise cash count by an independent person e.g. the internal auditor.
Which of the following statements is not a good internal control for petty cash. a. The officer in charge of petty cash may have access to other company funds b.Petty cash should be maintained on an imprest basis c.All petty cash payment must be properly authorized by a responsible person and must be in accordance with laid down policies d.Petty cash reimbursement should be made only after the petty cashier has properly accounted for all payments made during the period e.g. by supporting documents to duly authorized petty cash voucher e.There should be a surprise cash count by an independent person e.g. the internal auditor.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements is not a good internal control for petty cash.
a. The officer in charge of petty cash may have access to other company funds
b.Petty cash should be maintained on an imprest basis
c.All petty cash payment must be properly authorized by a responsible person and must be in accordance with laid down policies
d.Petty cash reimbursement should be made only after the petty cashier has properly accounted for all payments made during the period e.g. by supporting documents to duly authorized petty cash voucher
e.There should be a surprise cash count by an independent person e.g. the internal auditor.
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