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

Question

Quizplus · Accepted Answer

Preparing a bank reconciliation is a control used to ensure the accuracy of cash records by comparing the company's bank statement with its own accounting records. It helps to detect errors, fraud, and other irregularities, and protects the company's assets by preventing erroneous or unauthorized transactions.

Preparing a Bank Reconciliation on a Monthly Basis Is an Example