Cash disbursement control activities :

1.All payments prepared by the clerk include a pre-numbered bank transferrequisition.

2.The bank transfer requisition requires the clerk to confirm that they haveperformed the following procedures for each payment:

• checked the additions and prices on the invoice
• confirmed the details on the invoice have been matched to a delivery noteby the warehousing department
• verified a valid purchase order exists for the goods.

3.The clerk forwards the bank transfer requisition together with any supporting

documentation (invoice and any other relevant correspondence) to the CFO for

approval.

Question:

a. Describe what the control activity is designed to prevent or detect.

B.Identify the account(s) and the assertion(s) that the control activity will have an

effect on in the financial report.

C. Provide one example of a procedure that could be used to test the controlCash disbursement