Which of the following is not a suggested procedure to estab

Which of the following is not a suggested procedure to establish internal control over cash disbursements?

Solution

ANSWER IS ANY ONE CAN SIGN THE CHEQUE.

EVALUATION

1- bank statement should be reconciled monthly which will help you identify discrepancies, possible bank errors or fraudulent activity that has happened in your account during the month. It will also let you know what transactions you have authorized but have not yet cleared the account, such as uncashed checks.

2-not suggested as if any one can sign the check there can be fraudelet activity or cash mismanagement.

3-Today checks are either printed on check stock imprinted with all company and banking information or on laser stock without any of the banking information. When it comes to check stock, the stock with the preprinted information needs to be stored, with greater care than the blank laser paper. Proper storage is only the first step to ensuring minimized check loss. If your check stock is not adequately stored anyone walking by could filch stock and write a fraudulent check on your account. Control is lost when access to the storage location is not limited.

4-this helps in audits and maintain transperancy of process.