Match the check-writing policies for a small business described below to the following control activities: a. Authorization
Question:
Match the check-writing policies for a small business described below to the following control activities:
a. Authorization
e. Periodic independent check
b. Recording transactions
f. Separation of duties
c. Documents and records g. Sound personnel policies
d. Physical controls 1. The person who writes the checks to pay bills is different from the people who authorize the payments and keep records of the payments.
2. The checks are kept in a locked drawer. The only person who has the key is the person who writes the checks.
3. The person who writes the checks is bonded.
4. Once each month the owner compares and reconciles the amount of money shown in the accounting records with the amount in the bank account.
5. The owner of the business approves each check before it is mailed.
6. Information pertaining to each check is recorded on the check stub.
7. Every day, all checks are recorded in the accounting records, using the information on the check stubs.
Limitations of Internal Control
Step by Step Answer: