Which of the following is not an example of internal control over cash?
A)Preparation of a cash budget
B)Daily deposits of cash receipts at the bank
C)Combining the functions of signing checks with the approval of expenditures
D)Preparation of bank reconciliation

Question

Quizplus · Accepted Answer

Combining the functions of signing checks with the approval of expenditures is an example of a lack of internal control over cash, as it increases the risk of fraudulent activity and errors. The other options listed are all examples of internal control measures over cash: preparing a cash budget helps to plan and monitor cash inflows and outflows, daily deposits of cash receipts at the bank ensure that cash is not kept on hand for extended periods of time, and preparation of bank reconciliation helps to reconcile the bank balance with the company's recorded cash balance, identifying any discrepancies or errors.

Which of the Following Is Not an Example of Internal