The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.)
-Mathematical extensions and footings on purchase invoices are verified before the invoices are paid.
A)Adheres to sound internal controls
B)Violates sound internal controls
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

Verifying mathematical extensions and footings on purchase invoices before payment is a procedure that adheres to sound internal control principles. It ensures that payments are made only for the correct amounts, reducing the risk of overpayment or fraud.

The Following Set of Items Describes Activities Completed by a Company