Which of the Following Is Not an Internal Control Activity

question 63

Multiple Choice

Which of the following is not an internal control activity for cash?

• A) Surprise audits of cash on hand should be made occasionally.
• B) All cash receipts should be recorded promptly.
• C) The number of persons who have access to cash should be limited.
• D) Most transactions should be in cash to reduce recordkeeping.

Know the best practices for managing and documenting cash transactions to maintain effective control.

Recognize the significance of prenumbering documents and its impact on tracking financial transactions.

Understand the process and purpose of bank reconciliations in managing cash balances.

Identify the risks and limitations associated with internal control systems, including human errors and collusion.

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Definitions:

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Grapheme-Colour Synesthesia

A type of synesthesia in which the person associates numbers and letters with the sensation of seeing colors.

Emotional Synesthesia

A condition in which one type of stimulation evokes the sensation of another, such as the experience of seeing colors when emotions are felt.

Distal Myopia

A condition where distant objects appear blurred due to the eye focusing images in front of the retina.