Internal control of cash payments Obj. 3
Abbe Co. is a small merchandising company with a manual accounting system. An investigation
revealed that in spite of a sufficient bank balance, a significant amount of available cash discounts
had been lost because of failure to make timely payments. In addition, it was discovered
that the
invoices for several purchases had been paid twice.
Outline procedures for the payment of vendors’ invoices so that the possibilities of
losing available cash discounts and of paying an invoice a second time will be minimized.AppendixLO1