Posted: January 25th, 2016

Identify the internal control principle that is applicable to each procedure

ACC 280 Brief Exercise 8-5 Mingenback Company has the following internal control procedures

Brief Exercise 8-5 Mingenback Company has the following internal control procedures over cash disbursements.

Identify the internal control principle that is applicable to each procedure.

1. Company checks are prenumbered.
2. The bank statement is reconciled monthly by an internal auditor.
3. Blank checks are stored in a safe in the treasurer’s office.
4. Only the treasurer or assistant treasurer may sign checks.
5. Check signers are not allowed to record cash disbursement transactions.