Question

Which of the following functions should be segregated to ensure good internal control over cash receipts? (Select all that apply.)

A. Employees involved in or have access to accounting records

B. Employees involved in the reconciliation of cash book balances to bank balances.

C. Employees who handle cash.

D. Employees who sign check made out to vendors.

Answer 1

Above given all Options should be segregate to ensure good internal control over cash receipts.

So to ensure good internal control over Cash receipt following functions should be segregated:

- Employees involved in or have access to accounting records

- Employees involved in the reconciliation of cash book balances to bank balances.

- Employees who handle cash.

- Employees who sign check made out to vendors.

Since employees who have these controls may do misappropriation/fraud with cash balance therefore there duty should be segregate.

I hope this clear your doubt.

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