Payment by check is an important internal control since:
A)the check provides a record of the payment.
B)the check must be signed by an authorized official who should study the evidence supporting the payment.
C)all checks must be approved by the bank's internal audit department before they are paid.
D)both A and B are true.

Question

Quizplus · Accepted Answer

Payment by check provides a record of the payment, and the check must be signed by an authorized official who should study the evidence supporting the payment. Therefore, both option A and B are true, making option D the correct choice. Option C is incorrect because checks are not approved by the bank's internal audit department before they are paid; they are usually processed by the bank's payment system automatically.

Payment by Check Is an Important Internal Control Since