Analyze the internal control over cash payments


Response to the following questions:

1. The accounting clerk pays all obligations by prenumbered checks. What are the strengths and weaknesses in the internal control over cash payments in this situation?

2. The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference?

If possible, please give examples to better understand your answers.

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Auditing: Analyze the internal control over cash payments
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