From the viewpoint of good internal accounting control, which of the following individuals would be the proper person to prepare bank reconciliations for a company that receives cash payments both through the mail and from customers in person?
A) The individual who opens the company's mail and lists the payments received
B) The individual who works in the customer service department and receives payments from customers who pay in person
C) The individual who deposits the daily cash receipts in the bank
D) Any of the above individuals would be appropriate
E) None of the above

Question

Quizplus · Accepted Answer

To ensure good internal accounting control, the task of preparing bank reconciliations should be segregated from the duties of handling cash or recording cash transactions. This separation of duties helps to prevent and detect errors or fraud. Individuals who open mail, receive payments in person, or deposit cash receipts are directly involved in handling cash, making them inappropriate choices for preparing bank reconciliations.

From the Viewpoint of Good Internal Accounting Control, Which of the Following