Which of the following is an example of an internal control question that an auditor may ask?
A) Do you make daily intact deposits of each day's receipts?
B) Do you restrictively endorse checks "for deposit only?"
C) Do you reconcile bank deposit receipts against credits to accounts receivables?
D) All of the above.

Question

Quizplus · Accepted Answer

All of the choices mentioned are examples of internal control questions that an auditor may ask. Choice A relates to cash handling procedures and whether daily deposits are made to prevent misappropriation of funds. Choice B relates to the proper endorsement of checks to prevent unauthorized negotiation. Choice C relates to ensuring the accuracy of bank deposits and accounts receivables. Therefore, all of these questions are relevant to assessing the effectiveness of internal controls over cash receipts and accounts receivable.

Which of the Following Is an Example of an Internal