Preparing a bank reconciliation on a monthly basis is an example of:
A) A technological control.
B) Poor internal control.
C) Separation of duties.
D) Protecting assets by proving the accuracy of cash records.
E) Establishing responsibility.

Question

Quizplus · Accepted Answer

Preparing a bank reconciliation on a monthly basis is a way of protecting assets by proving the accuracy of cash records. It helps to identify any discrepancies between the bank statement and the company's cash records, such as errors, omissions, or fraudulent activity. By reconciling cash balances, companies can ensure that they have a true and accurate representation of their cash position. Therefore, it is an important internal control procedure.

Preparing a Bank Reconciliation on a Monthly Basis Is an Example