daniela3244
Answered

Westonci.ca is the best place to get answers to your questions, provided by a community of experienced and knowledgeable experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Tyler Jones is authorized to prepare and sign checks for the company. He also enters the checks Into the ledger. He wrote a $500.00 check to Jones Repair, a fictitious company and entered the
check Into the ledger as a repair expense. He deposited the check into his own account. Which of the following internal controls would have prevented the theft?
A. All checks require two signatures.
B. All checks require a voucher or Invoice.
C. All payments and purchases are made by check.
D. The bank reconciliation is completed monthly.

Sagot :

Samawati

Answer:

A. All checks require two signatures.

Explanation:

Internal controls refer to the checks and balances that an organization puts into place to ensure its financial transactions' integrity. They are the measures and regulations that safeguard against fraudulent transactions, especially in the finance department. Internal control protects business assets from theft and misuse by malicious employees.

Requiring all transactions to be approved by a senior officer is a control measure that would have prevented Tyler Jones from succeeding in stealing. In this case, the check would have to be signed by a second person. The second signature serves as an approval.

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.