Listed Below Are Several Examples of Internal Control Procedures

question 64

Essay

Listed below are several examples of internal control procedures.
Required: For the following internal control procedures,give the reason or objective of the control:
a.Checks are mailed by someone other than the person who prepares and signs a check.
b.The accounting department matches invoices received to receiving reports prior to recording the payable.
c.The cashier deposits cash and mails checks to vendors,but does not record any information in the accounting system.
d.The employee performing the bank reconciliation does not perform any cash handling or recording activities.

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Definitions:

Liquidation Proceeding

A legal process in which a company's assets are sold off to pay creditors.

Chapter 7

A section of the United States Bankruptcy Code that involves the liquidation of a debtor's assets to pay off creditors.

Debtor

A person or entity that owes a debt to another, typically financial in nature.

Hazardous Waste Site

A location where harmful chemicals and materials are stored or disposed of, posing potential risks to the environment and public health.