Which of the Following Internal Control Activities Most Likely Would

question 79

Multiple Choice

Which of the following internal control activities most likely would deter lapping of collections from customers?

• A)Independent internal verification of dates of entry in the cash receipts journal with dates of daily cash summaries.
• B)Authorization of write-offs of uncollectible accounts by a supervisor independent of credit approval.
• C)Separation of duties between receiving cash and posting the accounts receivable ledger.
• D)Supervisory comparison of the daily cash summary with the sum of the cash receipts journal entries.

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Definitions:

Mathematical Mistake

An error occurring in the process of performing mathematical calculations, often leading to incorrect results or conclusions.

Substantial

Of considerable importance, size, or worth.

Excavation

The process of moving earth, rock, or other materials with tools, equipment, or explosives to clear a space for construction or mining.

Pertinent Information

Relevant or applicable data or details that are directly related to a particular matter or situation being considered.