Preparing a bank reconciliation on a monthly basis is an example of:
A)Establishing responsibility.
B)Separation of duties.
C)Protecting assets by proving the accuracy of cash records.
D)A technological control.
E)Poor internal control.

Question

Quizplus · Accepted Answer

Preparing a monthly bank reconciliation helps to ensure the accuracy of cash records and protect the company's assets, as any discrepancies can be identified and investigated. It is a control activity within the internal control framework. Establishing responsibility, separation of duties, and technology controls are also part of the internal control system, but they are not exemplified by the preparation of a bank reconciliation. Poor internal control would be indicated if a bank reconciliation were not being performed regularly.

Preparing a Bank Reconciliation on a Monthly Basis Is an Example