The use of pre-numbered cheques is an example of: segregation of duties Correct answer documentation procedures establishment of responsibility You Answered independent internal verification
Question
The use of pre-numbered cheques is an example of: segregation of duties Correct answer documentation procedures establishment of responsibility You Answered independent internal verification
Solution
The use of pre-numbered cheques is an example of:
Documentation Procedures.
Explanation:
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Pre-numbered cheques are used as a part of a company's internal control system. They help to ensure that all transactions are recorded and that no cheques are missing, stolen, or used fraudulently.
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This is a part of the company's documentation procedures, which involve the use of documents and records to control financial transactions.
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The use of pre-numbered cheques helps to provide a reliable audit trail, making it easier to trace and verify transactions. This is why it is considered a part of documentation procedures.
Similar Questions
The use of pre-numbered cheques is an example of:
Allowing only the financial controller to sign cheques is an example of: Group of answer choices separation of duties. establishment of responsibility. other controls. documentation procedures.
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The principle of establishing responsibility does not includeGroup of answer choicesone person being responsible for one task.approval of transactions.independent internal verification.authorization of transactions.
Select all that applyWhich of the following are internal controls for checks?Multiple select question.The person who handles cash receipts should also handle writing checks for purchases.Checks should be sequentially prenumbered.Checks for large amounts should require two signatures.The employee who writes the check should reconcile the bank statement.
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