Which of these would be a necessary control to prevent a cash payment being made for an unauthorised purpose?
A) invoices being required before cheques are issued.
B) only authorised people being able to issue cheques.
C) the duties of approving invoices and signing cheques are separated.
D) all of the above.

Question

Quizplus · Accepted Answer

All the options listed are necessary controls to prevent cash payments for unauthorized purposes. Requiring invoices ensures that there is documentation for each transaction. Limiting cheque issuance to authorized personnel helps prevent fraudulent transactions. Separating the duties of approving invoices and signing cheques introduces a system of checks and balances, making it harder for a single person to commit fraud.

Which of These Would Be a Necessary Control to Prevent