Which of the following is not an internal control activity for cash?
A) Limit the number of employees who have access to cash.
B) Recordkeeping and physical custody of cash should be performed by the same person.
C) Record and deposit all cash receipts promptly.
D) Banking facilities should be used as much as possible.

Question

Quizplus · Accepted Answer

It is not a good internal control activity to have the same person performing both recordkeeping and physical custody of cash. This increases the risk of fraud and errors. Separation of duties is a key internal control principle. A better control activity would be to have one person responsible for recordkeeping and another for physical custody of cash. The other options (A, C, and D) are all good internal control activities for cash.

Which of the Following Is Not an Internal Control Activity