A well-designed set of internal controls helps a company achieve four main purposes.Which of the following best pairs two controls related to a single purpose?
A)Restrictive endorsements and bank reconciliations
B)Restrictive endorsements and completing the steps in the accounting cycle
C)Bank reconciliations and background checks
D)Pre-numbered documents and background checks

Question

Quizplus · Accepted Answer

Restrictive endorsements are a control over cash receipts to ensure that checks are not deposited without proper authorization. Bank reconciliations are a control over cash disbursements to ensure that all checks are properly recorded and cleared by the bank. Both of these controls are related to the purpose of safeguarding assets.

A Well-Designed Set of Internal Controls Helps a Company Achieve