Internal control over a company's assets should NOT include the following procedures:
A) Responsibilities and duties of employees will be divided.
B) All cash receipts will be accumulated until significant enough for a major deposit.
C) All cash payments will be made by check (except petty cash).
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Option B is incorrect because accumulating all cash receipts until they are significant enough for a major deposit can increase the risk of theft or mismanagement. Effective internal control systems typically advocate for timely and regular deposits to minimize the amount of cash on hand and reduce associated risks.

Internal Control Over a Company's Assets Should NOT Include the Following