Which of the following is NOT a control activity over cash?
A)The same individual receives the cash and pays the bills.
B)Surprise audits of cash on hand should be made occasionally.
C)Access to cash is limited.
D)Only designated personnel are authorized to handle cash.

Question

Quizplus · Accepted Answer

Having the same individual receive the cash and pay the bills does not provide adequate segregation of duties, which is an important internal control over cash. The remaining options, B, C, and D, all represent internal control activities over cash. Surprise audits help ensure that cash is not misappropriated, limited access to cash reduces the likelihood of theft, and designated personnel handling cash helps to ensure accountability and accuracy.

Which of the Following Is NOT a Control Activity Over