Identify the Internal Control Procedures Applicable to Cash Disbursements Followed

question 193

Essay

Identify the internal control procedures applicable to cash disbursements followed by Tolan Company in each of the following cases.
1. Company checks are pre-numbered.
2. Only the treasurer is authorized to sign checks.
3. Bonding of employees that handle cash.
4. Blank checks are stored in a locked safe.
5. The bookkeeper, not the treasurer, records cash disbursements.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced when holding two or more contradictory beliefs, values, or ideas simultaneously, often leading to a change in beliefs or behaviors.

Counterproductive Work Behavior

entails actions by employees that harm the interests and functioning of an organization, including theft, sabotage, and workplace aggression.

Organizational Citizenship Behavior

Voluntary employee behaviors that contribute to organizational goals by improving the context in which work takes place.

Baby Busters

A term sometimes used to refer to individuals born during periods of declining birth rates, particularly following the baby boom era.