Asked by Carmia Mattox on Jul 09, 2024
Verified
An effective system of internal control requires that at least two individuals be assigned to one cash drawer so that each can serve as check on the other.
Cash Drawer
A container or compartment within a cash register where cash from transactions is kept, often used in retail settings.
Internal Control
Processes and procedures implemented by a firm to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.
- Discern the essential tenets of duty division to heighten the effectiveness of internal governance systems.
Verified Answer
KP
Kevin PayneJul 09, 2024
Final Answer :
False
Explanation :
An effective system of internal control often requires that only one individual be assigned to a cash drawer to ensure clear accountability and simplify the tracing of any discrepancies or errors.
Learning Objectives
- Discern the essential tenets of duty division to heighten the effectiveness of internal governance systems.
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