Internal control procedures for cash receipts require that:
A) Custody over cash is kept separate from its recordkeeping.
B) Cash sales should be recorded on a cash register at the time of each sale.
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) All of these.

Question

Quizplus · Accepted Answer

All of the choices are correct internal control procedures for cash receipts. Separation of custody and recordkeeping, recording sales on a cash register, limiting access to cash and register tape, and having a second employee compare cash recorded by the register with receipts reported by the cashier are all important controls to prevent theft or errors. It is essential to implement all of these procedures to ensure the accuracy and reliability of cash receipts.

Internal Control Procedures for Cash Receipts Require That