Identify and discuss at least four features of an effective system of internal controls over cash receipts and disbursements. (Select the four thatapply.)

A.

Issue checks instead of cash payment to pay forsmall, miscellaneous expenses such as visitorparking, lunches, and reimbursements for tolls and supplies.

B.

Ensures proper segregation of external duties. Any individuals who have physical custody over cash should also handle accounting records. This means that any employees handling cash should have access to ledger accounts and bank statements and should be responsible for reconciling the bank statements to the ledger accounts.

C.

Clearly establishesresponsibilities, including responsibility for the physical custody overcash, approval of cashpayments, signing and mailing ofchecks, the accountingrecords, and the bank reconciliations.

D.

Creates proper controls over humanresources, such as conducting backgroundchecks, bondingemployees, handlingcash, and requiring that all employees take vacation days.

E.

Uses documentation to create proper monitoring over cashmovement, such as approval of payments and summary of deposits made.

F.

Establishes proper physical control overcash, such as establishing backaccounts, procedures for cashdeposits, and petty cash imprest fund.