Match the Internal Control Principle Below with the Appropriate Cash

question 112

Short Answer

Match the internal control principle below with the appropriate cash receipts procedure described.
a. Documentation procedures
b. Establishment of responsibility
c. Independent internal verification
d. Human resource controls
e. Physical controls
f. Segregation of duties
_____ 1. Only designated personnel are authorized to handle cash receipts.
_____ 2. Different individuals receive cash and record cash receipts.
_____ 3. Use remittance advice and cash register tapes.
_____ 4. Store cash in safes and bank vaults.
_____ 5. Treasurer compares total receipts to bank deposits daily.
_____ 6. Bonding of employees that handle cash.
SO: 3, Bloom: C, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Resource Management, AICPA FN: Risk Analysis, AICPA PC: None, IMA: Internal Controls
Solution 174 (5 min.)

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Definitions:

Compliance

The act of conforming to or following rules, standards, or instructions, often used in contexts involving legal and regulatory measures.

Persuasive Communications

Messages intended to influence the attitudes, beliefs, or behaviors of the recipient through argumentation or appeal.

Psychological Distress

A state of emotional suffering associated with stressors and demands that are difficult to cope with in daily life.

Electric Shocks

A sudden discharge of electricity through a part of the body, potentially causing harm or discomfort.