Question: The principle that receipts should be banked daily and all payments made by cheque or electronic transfer provides a sound basis for internal control over

‘The principle that receipts should be banked daily and all payments made by cheque or electronic transfer provides a sound basis for internal control over cash. But it breaks down immediately when cash is given to a junior employee to spend through the petty cash fund.’ Discuss this statement.

Step by Step Solution

3.43 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

An imprest system of petty cash should be used Cash s... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!