A strong system of internal control requires that all payments be made by check except those made from a carefully controlled cash fund, such as a petty cash fund.

Question

Quizplus · Accepted Answer

Making payments by check helps to create a paper trail and allows for easier tracking and monitoring of expenses. However, in cases where small, immediate expenses need to be made, a petty cash fund may be used but it should be closely monitored and controlled to prevent fraud or misappropriation of funds.

A Strong System of Internal Control Requires That All Payments