UESTION 23

You are working on the CCSU audit. Assume that the questions below are unrelated. Michelle Kusaila, another staff member, has given you the following list of what he refers to as "internal control deficiencies" and has asked you to review each point and make sure that you agree that each is an internal control deficiency.

Agree, this IS a control deficiency.

Disagree, this is NOT a control deficiency.

- A. B.	Voided checks should be so marked (defaced) and retained so as to allow one to know that they have been voided and are not outstanding.
- A. B.	One expects separate sequences of numbers of the various accounts, as one overall sequence for various bank accounts is, at best, unwieldy; establishing control over each sequence is generally adequate.
- A. B.	Since the purchasing department employees approve purchases they should also sign checks.
- A. B.	Checks should not be made payable to cash as they may be cashed by anyoneproperly or improperly.
- A. B.	The authorized signers disburse funds and effective oversight of those disbursements requires account reconciliation by another individual.
- A. B.	Cash receipts should be so prelisted.
- A. B.	A policy of restrictively endorsing such receipts (e.g., endorsing the checks as "pay only to CCSU") is a control.
- A. B.	The person signing the check should be the person who perforates (defaces) the checks so as to eliminate the possibility of that support being used again to improperly support another disbursement.

A.	Agree
B.	Disagree