Internal control procedures for cash receipts do not require that:
A)Custody over cash is kept separate from its recordkeeping.
B)All collections for sales are be received immediately upon making the sales.
C)Clerks having access to cash in a cash register should not have access to the register tape or file.
D)An employee with no access to cash receipts should compare the total cash recorded by the register with the record of cash receipts reported by the cashier.
E)Cash sales should be recorded on a cash register at the time of each sale.

Question

Quizplus · Accepted Answer

While it is good practice to receive all collections for sales immediately, it is not a requirement for internal control procedures for cash receipts. However, all other options listed (A, C, D, and E) are necessary for effective internal control procedures for cash receipts. Custody over cash should be kept separate from its recordkeeping (A), clerks having access to cash in a cash register should not have access to the register tape or file (C), an employee with no access to cash receipts should compare the total cash recorded by the register with the record of cash receipts reported by the cashier (D), and cash sales should be recorded on a cash register at the time of each sale (E).

Internal Control Procedures for Cash Receipts Do Not Require That