At Cadmia Services,the cashier collects checks and cash from customers,and the junior accountant records the transactions in the journal.The controller approves the journal entries and bank reconciliations.The treasurer signs checks and approves contracts.
Which internal control procedure is exemplified in the above situation?

Question

Quizplus · Accepted Answer

The situation exemplifies the separation of duties internal control procedure, in which different individuals are assigned responsibilities to ensure that no single person has complete control over a transaction. This helps to reduce the risk of errors and fraud. The cashier collects the checks and cash, and the junior accountant records the transactions. The controller approves journal entries and bank reconciliations, while the treasurer signs checks and approves contracts.

At Cadmia Services,the Cashier Collects Checks and Cash from Customers,and