Narbona, CPA, is reviewing controls over cash received through a bank night depository. Which controls would she find most important?
A)Responsibilities are rotated for processing night depository receipts among employees of the various departments.
B)Dual control (joint custody)is established over the contents of the night depository box from the time of removal until initial recording is completed.
C)Vacations are required for all employees engaged in night depository activities.
D)All deposit tickets related to night deposits are numbered.

Question

Quizplus · Accepted Answer

Dual control over the contents of the night depository box is important to ensure that no single employee has sole access to the cash received. This helps prevent the possibility of theft or misappropriation. The other choices - rotation of responsibilities, vacations, and deposit ticket numbering - are also important controls, but they are not as crucial as establishing dual control.

Narbona, CPA, Is Reviewing Controls Over Cash Received Through a Bank