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lara [203]
2 years ago
13

Tott Company has the following internal control procedures over cash disbursements. Identify the internal control principle that

is applicable to each procedure.
(a) Company checks are prenumbered.
(b) The bank statement is reconciled monthly by an internal auditor.
(c) Blank checks are stored in a safe in the treasurer’s office.
Business
1 answer:
frozen [14]2 years ago
5 0

Answer: a) Documentation Procedures

b) Independent Internal Verification

c) Physical Control

Explanation:

I'll list the internal control principle in bold letters and then explain them a little.

(a) Company checks are prenumbered. DOCUMENTATION PROCEDURES.

These are meant to provide a paper trail to identify the events that occur in a company and pre numbering check ensures that the number is always known.

(b) The bank statement is reconciled monthly by an internal auditor. INDEPENDENT INTERNAL VERIFICATION.

Here the company runs its own checks and balances to ensure that they are in good shape.

(c) Blank checks are stored in a safe in the treasurer’s office. PHYSICAL CONTROL.

This refers to the use of physical devices to keep documents and assets safe and can include safes, vaults and safety deposit boxes.

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Answer: Quality control

 

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Thus, we can conclude that managers are engaged in quality control.

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3 years ago
Cooley company's stock has a beta of 1.32, the risk-free rate is 4.25%, and the market risk premium is 5.50%. what is the firm's
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11.51%

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6 0
3 years ago
Comparing how many dollars it takes to attend college each year to annual earnings on a job represents the use of money as a?
kirill115 [55]

Unit of Account.

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3 0
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2. Which of the following statements about interest is true? a. Interest is a one-time fee that you pay for lending money. b. In
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