Which of the following controls over cash would an auditor expect to observe?
A)Reconciliation of the general ledger to the subsidiary ledger.
B)Checks permanently marked "for deposit only" with the proper routing information.
C)Internal audits of marketable securities held in the company's lockbox.
D)Authorization privileges given only to those employees using the accounting system.

Question

Quizplus · Accepted Answer

Checks permanently marked "for deposit only" with the proper routing information would be a control over cash that an auditor would expect to observe. This control helps ensure that all cash received by the company is deposited into its bank account and not diverted elsewhere. The other options listed are controls over other financial transactions and would not directly relate to cash.

Which of the Following Controls Over Cash Would an Auditor