Prenumbered printed cheques are an example of which internal control principle?
A) Technological controls.
B) Maintain adequate records.
C) Perform regular and independent reviews.
D) Technological controls and maintain adequate records.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

Prenumbered printed cheques are an example of maintaining adequate records internal control principle as it enables the company to track and reconcile all the cheques issued, thereby reducing the risk of fraud and errors. Technological controls may also be involved in producing the prenumbered cheques, but that is not the main internal control principle being demonstrated here. Performing regular and independent reviews is also an important internal control principle, but it is not necessarily demonstrated through the use of prenumbered cheques.

Prenumbered Printed Cheques Are an Example of Which Internal Control