Which of the following does not contribute toward achieving internal control over cash payments?
A) The practice of making small cash disbursements directly from the current day's cash receipts.
B) The use of a voucher system.
C) The use of a petty cash fund.
D) The practice of approving every expenditure before the cash disbursement is made.

Question

Quizplus · Accepted Answer

Making small cash disbursements directly from the current day's cash receipts does not contribute toward achieving internal control over cash payments. In fact, this practice can undermine internal controls as it increases the risk of errors, fraud, and misappropriation of funds. Effective controls for cash payments include the use of a voucher system, the establishment and proper management of a petty cash fund, and the practice of requiring approval for each expenditure before the cash disbursement is made.

Which of the Following Does Not Contribute Toward Achieving Internal