Payments by check is an important internal control for all of the following reasons EXCEPT for:
A) the checks provided a record of the payment.
B) the check must be signed by an authorized official.
C) all payments are made via a lock-box system.
D) before signing the check, the authorized official should study the evidence supporting the payment.

Question

Quizplus · Accepted Answer

Option A, B, and D are correct because using checks provides a record of payment, requires an authorized official's signature, and encourages a review of evidence before payment. Option C is incorrect because making all payments through a lock-box system does not relate to paying by check and is not a reason why paying by check is an important internal control.

Payments by Check Is an Important Internal Control for All