Question

. In a well designed internal control system, two tasks that should be performed by different...

. In a well designed internal control system, two tasks that should be performed by different persons are

Approval of bad debt write-offs, and reconciliation of the accounts payable subsidiary ledger and controlling account.

Distribution of payroll checks and approval of sales returns for credit.

Posting of amounts from both the cash receipts journal and cash payments journal to the general ledger.

Recording of cash receipts and preparation of bank reconciliations.
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Answer #1

Answer: Recording of cash receipts and preparation of bank reconciliations.

Explanation::

Two tasks

  • Recording of cash receipts and
  • Preparation of bank reconciliations.

Should be performed by different persons.

.

1.Approval of bad debt write-offs, and reconciliation of the accounts payable subsidiary ledger and controlling account

  • Can be performed by the same person

2.Distribution of payroll checks and approval of sales returns for credit.

  • Can be performed by the same person

3.Posting of amounts from both the cash receipts journal and cash payments journal to the general ledger

  • Can be performed by the same person

Thus, Option iv is correct.

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