For a Strong Internal Control System Over Cash, It Is

question 27

True/False

For a strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.

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Definitions:

Stop-payment Order

A request made to a bank instructing it not to process a payment on a check or transaction that has been issued but not yet cashed.

Wrongful Payment

A payment made in error, either due to fraud, administrative error, or mistaken identity, which may require recovery.

Liable

Liable means being legally responsible or obligated to compensate for harm, damages, or loss resulting from one's actions or negligence.

Prosecuted

In legal context, it refers to the process of bringing charges against an individual or entity in a court of law.