Which of the following is not a suggested procedure to establish a good control activity over cash disbursements?
A)Pre-signed blank cheques
B)Different individuals approve and make payments
C)Blank cheques are stored with limited access
D)The bank statement is reconciled monthly

Question

Quizplus · Accepted Answer

Pre-signed blank cheques should never be used as a control activity as they increase the risk of fraud and unauthorized payments. All cheques should have the payee, amount, and date filled in at the time of payment authorization. The other three suggested procedures (different individuals approving and making payments, storing blank cheques with limited access, and reconciling the bank statement monthly) are all effective control activities for cash disbursements.

Which of the Following Is Not a Suggested Procedure to Establish