Which of the following is the most basic internal control for cash?
A) Keeping money in a bank account
B) Checking for counterfeit bills
C) Counting cash receipts twice
D) Internal audit of cash procedures

Question

Quizplus · Accepted Answer

Keeping cash in a bank account is the most basic and effective internal control for cash, as it reduces the risk of theft, loss, and errors. The bank provides security, recordkeeping, and reconciliation services, and the business can control and monitor cash transactions through bank statements and online banking. The other options, checking for counterfeit bills, counting cash receipts twice, and internal audit of cash procedures, are also important internal controls for cash, but they are secondary or complementary measures that enhance the accuracy, completeness, and reliability of cash handling processes.

Which of the Following Is the Most Basic Internal Control