Which of the following demonstrates a poor internal control procedure?

A) One bookkeeper prepares cash deposits and the other bookkeeper enters the collections in the journal and ledger.

B) The treasurer signs all checks after the bookkeeper prepares the supporting documents.

C) The bookkeeper makes cash deposits and records journal entries related to cash, while the treasurer prepares the bank reconciliation.

D) The president, who does no bookkeeping, prepares the bank reconciliation each month.

Question

Brooks Yoder

Chemistry

6 March, 13:31

Which of the following demonstrates a poor internal control procedure?

A) One bookkeeper prepares cash deposits and the other bookkeeper enters the collections in the journal and ledger.

B) The treasurer signs all checks after the bookkeeper prepares the supporting documents.

C) The bookkeeper makes cash deposits and records journal entries related to cash, while the treasurer prepares the bank reconciliation.

D) The president, who does no bookkeeping, prepares the bank reconciliation each month.

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Answers (1)

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Anna · Answer 1

Answer: The bookkeeper makes cash deposits and records journal entries related to cash, while the treasurer prepares the bank reconciliation.

Explanation: The bookkeeper in an organization is the person in charge of records keeping, his basic task is to keep financial records and therefore the bookkeeper has no business handling physical cash in an organization.

The financial secretary on the hand is in charge saving cash income and withdrawal of cash from an organization, this is done with the organization's accountant approval.