Payment by check is an important internal control because:
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)A and B

Question

Quizplus · Accepted Answer

Payment by check provides a record of the payment and must be signed by an authorized official who should study the evidence supporting the payment, thus serving as an important internal control. Option A and B are correct. However, option C is not true as the bank's internal audit department does not approve checks before payment.

Payment by Check Is an Important Internal Control Because