Which of the following is a sound internal control procedure for cash disbursements?

Question

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Marking supporting documents when paid helps to prevent duplicate payments and ensures that each payment is accurately recorded. Choice A is not a sound internal control procedure as paying with cash makes tracking of the payment more difficult. Choice B could lead to a conflict of interest as the person responsible for cash recordkeeping should not also be authorized to sign cheques. Choice D is not a sound internal control procedure as petty cash should only be used for small and infrequent purchases, not regular cash disbursements.

Which of the Following Is a Sound Internal Control Procedure