Which of the Following Controls Over Cash Would an Auditor

question 29

Multiple Choice

Which of the following controls over cash would an auditor expect to observe?

• A)Reconciliation of the general ledger to the subsidiary ledger.
• B)Checks permanently marked "for deposit only" with the proper routing information.
• C)Internal audits of marketable securities held in the company's lockbox.
• D)Authorization privileges given only to those employees using the accounting system.

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Definitions:

Information Outputs

The resulting data or information that is produced from a process or system.

Timely And Accurate

Describes information or processes that are delivered or completed within an expected time frame and with precision or correctness.

Accounting Information System

A system consisting of people, processes, and technology that manages financial data and supports business decisions.

Cost Effectiveness

An evaluation measure to determine how effectively a party is achieving its objectives relative to the costs incurred.