Chapter 7 discussion2 - In all the other transactions there...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Question: Which of the following does not contribute toward achieving internal control over cash payments? A ) The practice of making small cash disbursements directly from the current day's cash receipts. B) The use of a voucher system. C) The use of a petty cash fund. D) The practice of approving every expenditure before the cash disbursement is made. Please explain your choice. Option “A” sounds like the most culprit one here,
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: In all the other transactions there is some type of accountability, check and balance and verification involved. If a company chooses to make small cash disbursements directly from the current days cash receipts it would make the reconciliation process pretty tedious and time consuming. Additionally, there is no proper trail and which could leave room for errors and fraud if not reviewed regularly....
View Full Document

Ask a homework question - tutors are online