Which of the following control activities would best protect against the preparation of improper or inaccurate cash disbursements?
A) All checks must be signed by an officer designated by the board of directors.
B) All signed checks must be reviewed and compared with supporting documentation by the treasurer before mailing.
C) All checks must be sequentially numbered and accounted for by internal auditors.
D) All checks must be perforated or otherwise effectively canceled when they are returned with the bank statement.

Question

Quizplus · Accepted Answer

Requiring the treasurer to review and compare signed checks with supporting documentation before mailing provides a strong control over inappropriate or inaccurate cash disbursements. This control ensures that only valid payments are made and that they are made for the correct amounts. Options A, C, and D address other aspects of cash disbursements but do not provide as strong a control over the accuracy and appropriateness of payments as option B.

Which of the Following Control Activities Would Best Protect Against