Which of the following features should not be included in a good system of internal accounting control over cash?
A) All receipts are deposited daily in the bank.
B) All major disbursements are made by check, and an imprest fund is used for petty cash disbursements.
C) Cash handling is separated from the recording of cash transactions.
D) Monthly bank reconciliations are prepared by the person who makes the daily bank deposits.
E) All of the above are part of a good system of internal accounting control over cash.

Question

Quizplus · Accepted Answer

The separation of duties is a key principle in internal controls to prevent fraud and errors. Having the same person prepare monthly bank reconciliations and make daily bank deposits violates this principle, as it does not provide an independent check on the accuracy of the cash handling and recording process.

Which of the Following Features Should Not Be Included in a Good