Internal control procedures for cash receipts require that:
A)Custody over cash is kept separate from its recordkeeping.
B)Cash sales should be recorded on a cash register at the time of each sale.
C)Clerks having access to cash in a cash register should not have access to the register tape or file.
D)An employee (with no access to cash receipts) should compare the total cash recorded by the register with the record of cash receipts reported by the cashier.
E)All of the choices are required internal control procedures for cash receipts.

Question

Quizplus · Accepted Answer

All of the choices listed are required internal control procedures for cash receipts. It is best to have a segregation of duties so that custody over cash is kept separate from its recordkeeping. Cash sales should be recorded on a cash register at the time of each sale to provide an accurate record of sales. Clerks having access to cash in a cash register should not have access to the register tape or file because this would allow them to alter the records. An employee (with no access to cash receipts) should compare the total cash recorded by the register with the record of cash receipts reported by the cashier to detect any discrepancies. By following all of these procedures, a company can reduce the risk of errors or fraud in their cash receipts process.

Internal Control Procedures for Cash Receipts Require That