The voucher system requires that invoices be compared with receiving reports and express bills before a voucher is prepared and approved for payment.
A)Unrecorded checks appear in the bank statement
B)The treasurer takes funds by preparing a fictitious voucher charging "Miscellaneous General Expenses"
C)An employee in the purchasing department sends through fictitious invoices and receives payment
D)A cash shortage is covered by underfooting outstanding checks on the bank reconciliation
E)A cash shortage is covered by omitting some of the outstanding checks from the bank reconciliation

Question

Quizplus · Accepted Answer

The voucher system is designed to prevent fraudulent activities such as an employee in the purchasing department sending through fictitious invoices and receiving payment, by requiring verification of invoices with receiving reports and express bills before approval.

The Voucher System Requires That Invoices Be Compared with Receiving