Internal Procedure Control

In: Business and Management

Submitted By magoimoi
Words 3263
Pages 14
|a) A bank lockbox system |

|Which of the following controls would most likely reduce the risk of |
|diversion of customer receipts by a client's employees? |
|a) A bank lockbox system |
|b) Prenumbered remittance advices |
|c) Monthly bank reconciliations |
|d) Daily deposit of cash receipts |

|b) Stamped "paid" by the check signer |

|To provide assurance that each voucher is submitted and paid only once, the |
|auditors most likely would examine a sample of paid vouchers and determine |
|whether each voucher is: |
|a) Supported by a vendor's invoice |
|b) Stamped "paid" by the check signer |
|c) Prenumbered and accounted for |
|d) Approved for authorized purchases |

|d) Is responsible for mailing the checks |

|In testing controls over cash disbursements, the auditors most likely would |
|determine that the person who signs checks also: |
|a) Reviews the monthly bank reconciliation |
|b) Returns the checks to accounts payable |
|c) Is denied access to the supporting documents |
|d) Is responsible for mailing the checks |

|d) General ledger…...

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