Payments by EFT are an important internal control for all of the following reasons EXCEPT for:
A)the EFTs provide a record of the payments.
B)the EFT must be approved by an authorized official.
C)all EFT payments are made by the cashier in the Accounting Department.
D)the authorizing official should study the evidence supporting the payment before approving the EFT.

Question

Quizplus · Accepted Answer

Option C is incorrect because it is not true that all EFT payments are made by the cashier in the Accounting Department. This option contradicts the concept of segregation of duties, where different people should handle different aspects of payment processing to reduce the risk of fraud and errors. In reality, the person responsible for processing the payment might be different from the one authorizing or approving it. Options A, B, and D are correct because they highlight essential benefits and controls associated with EFT payments, such as the existence of a payment record, the need for authorization, and the review of supporting evidence before approval.

Payments by EFT Are an Important Internal Control for All