396 Chapter 8 Sarbanes-Oxley, Internal Control, and Cash 6. Before a voucher for the purchase of merchandise 9 Knott Inc. has a petty cash fund of $750. (a) Since is approved for payment, supporting documents should be compared to verify the accuracy of the liability. Give an example of supporting documents for the purchase of merchandise. the petty cash fund is only $750, should Knott Inc. implement controls over petty cash? (b) What controls, if any, could be used for the petty cash fund? 7. The balance of Cash is likely to differ from the bank 10. (a) How are cash equivalents reported in the finan- statement balance. What two factors are likely to be responsible for the difference cial statements? (b) What are some examples of cash equivalents? 8. What is the purpose of preparing a bank reconciliation