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.)
-All supporting documents attached to an invoice are canceled when the check is signed.
A)Adheres to sound internal controls
B)Violates sound internal controls
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

Canceling all supporting documents attached to an invoice when the check is signed adheres to sound internal controls because it helps prevent the documents from being used to support another payment, reducing the risk of fraud or duplicate payments.

The Following Set of Items Describes Activities Completed by a Company