Which of the following is not an internal control activity for cash?
A) The number of persons who have access to cash should be limited.
B) All cash receipts should be recorded promptly.
C) The functions of record keeping and maintaining custody of cash should be combined.
D) Surprise audits of cash on hand should be made occasionally.

Question

Quizplus · Accepted Answer

The functions of record keeping and maintaining custody of cash should be segregated as a key internal control activity for cash. Combining these functions increases the risk of fraud or errors going undetected. Option A, B, and D are all valid internal control activities for cash.

Which of the Following Is Not an Internal Control Activity