A good system of internal control for cash provides adequate procedures for protecting both cash receipts and cash disbursements

Question

2 years ago

7

A good system of internal control for cash provides adequate procedures for protecting both cash receipts and cash disbursements

. Identify which one of following statements is true regarding this protection.A basic guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records.

Business

2 answers:

kirill [66] · Answer 1 · 2022-09-24T06:40:24+03:00

Answer:

The correct answe is A basic guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records.

Explanation:

A separate management of the registry and custody functions will reduce fraud, since being two tasks where cash is handled, it is likely that if the same person performs both functions, they will end up diverting money for their convenience, which directly affects in the organization and would waste important resources that can be executed in other important areas.

snow_lady [41] · Answer 2 · 2022-09-24T08:56:48+03:00

Answer:

A basic guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records.

Explanation:

Generally, an internal control can be described as a policy, process, procedure put in place by the management of an organisation in order to safeguard assets, enhance accountability, eradicate fraudulent behaviour, promote efficiency.

Put simply, internal control refers to a policy, process, procedure establish to ensure stealing of assets or perpetration of fraud by the employees are prevented.

By implication, of internal control for cash is refers to a policy, process, procedure established to ensure stealing of cash by the employees is prevented.

The technique that is often used by different organisation to prevent cash stealing by the employees is to separate the duties of those who have custody of cash from those who keep cash records.

Therefore, the statement that is true regarding this statement is that a basic guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records.