The Voucher System of Control

question 156

Multiple Choice

The voucher system of control:

• A) Is a set of procedures and approvals designed to control cash receipts and the acceptance of obligations.
• B) Applies only when multiple purchases are made from the same supplier.
• C) Establishes procedures for verifying, approving, and recording obligations for eventual cash disbursement.
• D) Is required in large companies but not beneficial for small to mid-sized companies.
• E) Establishes procedures for receiving checks for the sale of verified, approved, and recorded activities.

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted to protect investors by improving the accuracy and reliability of corporate disclosures.

Chief Financial Officers

Senior executives responsible for managing the financial actions of a company, including financial planning, risk management, and reporting.

Certify Accuracy

To officially affirm or validate the truthfulness and correctness of information or data.

Sarbanes-Oxley Act

A federal law established in the United States in 2002 that aims to safeguard investors through the enhancement of the precision and dependability of company reports.