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.)
-An employee from the accounting department compares the cash register tapes with the bank deposits.
A)Adheres to sound internal controls
B)Violates sound internal controls
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

Having an employee from the accounting department compare cash register tapes with bank deposits adheres to sound internal controls because it involves verification and reconciliation of cash handling, which is a key aspect of internal control systems to prevent errors or fraud.

The Following Set of Items Describes Activities Completed by a Company