Cash and Internal Controls Quiz
3 multiple-choice questions with answers and explanations · 2 easy, 1 hard
Internal control over cash: segregation of duties, establishing responsibility, the three-way match, and petty cash.
- 1Segregation of DutiesThe internal control principle of segregation of duties is best illustrated by:easy
- 2Establishing Responsibility as an Internal ControlRequiring that only specifically designated employees are authorized to sign company checks is an example of the internal control principle of:easy
- 3The Three-Way Match ControlA company's internal control policy requires that no invoice is paid without a matching purchase order and receiving report attached (a 'three-way match'). This control is primarily designed to prevent:hard