Taylor, CPA, has been engaged to audit the financial statements of University Books, Inc. University Books maintains a large revolving cash fund exclusively for the purpose of buying used books from students for cash. The cash fund is active all year because the nearby university offers a large variety of courses with various starting and completion dates throughout the year.

Receipts are prepared for each purchase, and reimbursement vouchers are submitted periodically.

Required:

Construct an internal control questionnaire to be used in the evaluation of internal control of University Books' buying segment's revolving cash fund. The internal control questionnaire should elicit a Yes or No response. Do not discuss the internal control procedures over the books that are purchased.