ICAEW ARF · Chapter 6 · Question 9 of 11
Which control over cash received in the post is most effective?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Post is opened by two people together, who list all receipts on a remittance list before passing them for banking
Explanation
Having two people open the post and immediately list receipts reduces the risk of theft and provides an independent record to agree to the banking and the cash book. Letting the ledger clerk handle receipts combines custody and recording, keeping cheques unsecured increases the risk of loss, and discarding remittances removes useful evidence.
More Controls over payroll, inventory and cash MCQs
- Q11Which of the following controls is most likely to detect 'teeming and lading' by a receivables clerk?
- Q1Which control best reduces the risk of fictitious ('ghost') employees being added to the payroll?
- Q2Which control best reduces the risk of hourly paid staff being paid for hours they did not work?
- Q3Which control best ensures that PAYE income tax and National Insurance deducted from employees are correctly paid over to HM Revenue &…
- Q4Which of the following is a physical control over inventory?