Control Procedures to Prevent Any Misappropriation and Irregularities in the Cash

question 5

Multiple Choice

Control procedures to prevent any misappropriation and irregularities in the cash disbursements process include the following except:

• A) Whenever possible, to minimize bank transaction fees, most disbursements should be made in the form of cash such as payments from petty cash, coin and currency.
• B) All cash disbursements, except for immaterial payments made from petty cash, must be made by check.
• C) Authorization is required for all cash disbursements prior to preparing a check.
• D) The person preparing the check to pay an invoice must have all the appropriate documentation, including the vendor invoice; the approved purchase order; and the receiving report.

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