Asked by Kimberly Carter on Jul 19, 2024
Verified
Internal control over a company's assets should NOT include the following procedures:
A) Responsibilities and duties of employees will be divided.
B) All cash receipts will be accumulated until significant enough for a major deposit.
C) All cash payments will be made by check (except petty cash) .
D) All of these answers are correct.
Internal Control
A system within a business that oversees its operations and financial processes to ensure accuracy and compliance.
Major Deposit
A significant amount of money placed in a financial institution or investment, often referring to a sizable transaction that impacts financial statements.
- Understand the internal control policies and procedures designed to protect a company's assets.
Verified Answer
DP
Daniela PentecostesJul 26, 2024
Final Answer :
B
Explanation :
Option B is incorrect because accumulating all cash receipts until they are significant enough for a major deposit can increase the risk of theft or mismanagement. Effective internal control systems typically advocate for timely and regular deposits to minimize the amount of cash on hand and reduce associated risks.
Learning Objectives
- Understand the internal control policies and procedures designed to protect a company's assets.
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