The voucher system requires that invoices be compared with receiving reports and express bills before a voucher is prepared and approved for payment.
A)Unrecorded cheques appear in the bank statement
B)The treasurer takes funds by preparing a fictitious voucher charging "Miscellaneous General Expenses"
C)An employee in the purchasing department sends through fictitious invoices and receives payment
D)A cash shortage is covered by underfooting outstanding cheques on the bank reconciliation
E)A cash shortage is covered by omitting some of the outstanding cheques from the bank reconciliation

Question

Quizplus · Accepted Answer

The voucher system is designed to prevent fraudulent payments by ensuring that invoices are verified against receiving reports and express bills before payment is approved. This process would help detect fictitious invoices.

The Voucher System Requires That Invoices Be Compared with Receiving