Asked by Kylee Crutchfield on May 05, 2024
Verified
A voucher system is an example of an internal control procedure over cash payments.
Voucher System
A set of procedures for authorizing and recording liabilities and cash payments.
Internal Control
Procedures and policies implemented by a company to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency.
Cash Payments
Transactions in which payment for goods or services is made with cash at the time of purchase.
- Understand the concept and importance of internal control procedures over cash and other assets.
- Comprehend the role and elements of a voucher system in internal control.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
True
Explanation :
A voucher system is a process of documenting and approving cash payments through the use of vouchers or authorization forms, which serves as evidence of the transaction. This internal control procedure helps to prevent fraud, errors, and other irregularities by ensuring that all payments are properly authorized and recorded.
Learning Objectives
- Understand the concept and importance of internal control procedures over cash and other assets.
- Comprehend the role and elements of a voucher system in internal control.