What are the affects of a major internal control activity that directly affects the audit of cash?
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total answers (1)
total answers (1)
Accounting
- A major internal control activity that directly affects the audit of cash is the completion of a monthly bank reconciliation by entity personnel who are independent of the handling and recording of cash receipts and cash disbursements.
- Such bank reconciliations ensure that the entity's books reflect the same balance as the bank balance after considering reconciling items.
- Controls can be improved further if an independent party such as the internal auditor reviews the bank reconciliation.
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