Which of the following controls would best help detect the removal of a blank check by an employee from the back of a company's checkbook for subsequent misappropriation of funds?
A)An accounting policies manual.
B)Tracing any debit memorandums from the bank to the company's records.
C)The use of prenumbered checks.
D)A review of the cash budget.

Question

Quizplus · Accepted Answer

The use of prenumbered checks helps in detecting any missing checks, as any gap in the sequence would indicate a potential issue such as the removal of a blank check.

Which of the Following Controls Would Best Help Detect the Removal