Identify the Internal Control Procedures Applicable to Cash Disbursements Followed

question 90

Essay

Identify the internal control procedures applicable to cash disbursements followed by Downey Company in each of the following cases.
1. Company checks are prenumbered.
2. Only the treasurer is authorized to sign checks.
3. All employees are required to take vacations.
4. Blank checks are stored in a locked safe.
5. The bookkeeper not the treasurer records cash disbursements.

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Definitions:

Business Reports

Formal documents that provide information, analysis, and recommendations to help businesses make informed decisions.

Potential Drawback

A possible disadvantage or negative outcome associated with a decision or action.

Statement Of Purpose

Planning statement that defines why you are preparing a report.

Analytical Report

A type of business report that uses qualitative and quantitative company data to analyze performance and make recommendations.