Posted: December 17th, 2015

Ndon Company has the following internal control procedures over cash disbursements.

Ndon Company has the following internal control procedures over cash disbursements.

Identify the internal control principle that is applicable to each procedure. (Identify the internal control principles applicable to cash disbursements. (SO 4), C)

(a)    Company checks are pre-numbered.

(b)   The bank statement is reconciled monthly by an internal auditor.

(c)    Blank checks are stored in a safe in the treasurer’s office.

(d)   Only the treasurer or assistant treasurer may sign checks.

(e)    Check signers are not allowed to record cash disbursement transactions