Which one of the following is a sound internal control procedure for cash disbursements?
A) Making copies of purchase orders for the receiving department so they know how many items to be expected upon delivery
B) Using presigned checks to facilitate payment within the cash discount period
C) Comparing purchase requisitions, purchase orders, receiving reports, and invoices
D) Requiring the signature of the purchasing department supervisor on checks

Question

Quizplus · Accepted Answer

Comparing purchase requisitions, purchase orders, receiving reports, and invoices is a sound internal control procedure for cash disbursements as it ensures that the payment is made for goods or services received and that there is proper documentation to support the payment. A, B, and D are not specific to cash disbursements and may not necessarily provide effective internal control over disbursements.

Which One of the Following Is a Sound Internal Control