Question

opening mail and making a list of checks received once per week is considered a good internal control over cash receipts. true or false

Answer 1

The statement is false because good internal controls over cash receipts require checks to be listed and mail to be opened daily, with tasks separated among employees to prevent fraud and ensure accuracy.

Step-by-step explanation:

The statement that opening mail and making a list of checks received once per week is considered a good internal control over cash receipts is false. Good internal controls over cash receipts dictate that such tasks should be performed more frequently, ideally on a daily basis, to ensure that all cash transactions are recorded promptly and accurately. This frequent reconciliation helps prevent errors and fraud. Moreover, the task of opening mail and listing checks should be separated among different employees to ensure a system of checks and balances, which is a foundational concept of internal control systems in financial management.