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.

Question

Quizplus · Accepted Answer

Most transactions should not be in cash as it increases the risk of fraud and errors in recordkeeping. Instead, electronic payment methods should be utilized to ensure proper recording and tracking of cash transactions. A strong internal control activity for cash is to have a system for recording and reconciling all cash receipts and disbursements, limiting access to cash to only authorized personnel, and conducting surprise audits to deter and detect any fraudulent activities.

Which of the Following Is Not an Internal Control Activity