Your answer is partially correct. Try again. Pennington Company has the following internal control procedures over cash disbursements.

Your answer is partially correct. Try again. Pennington Company has the following internal control procedures over cash disbursements. Identify the internal control principle that is applicable to each procedure. (a) Company checks are prenumbered. (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. Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT

Answer

A. Company checks are prenumbered: Foundation of duty Physical controls Segregation of obligations Human asset controls Independent inward confirmation Documentation procedures. B. The bank statement is reconciled monthly by an internal auditor: Isolation of obligations Documentation systems Independent internal verification Establishment of duty Physical controls Human asset controls. C. Blank checks are stored in a safe in the treasurer?s office: Physical controls Documentation strategies Human asset controls Independent inward confirmation Establishment of duty Segregation of obligations. D. Only the treasurer or assistant treasurer may sign checks: Isolation of obligations Documentation systems Physical controls Establishment of responsibility Human asset controls Independent inner check. E. Check-signers are not allowed to record cash disbursement transactions: Human asset controls Physical controls Documentation methodology Establishment of obligation Independent inward check Segregation of duties

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