Which Of The Following Is Not An Internal Control Activity For Cash? The Number Of Persons Who Have Access To Cash Should Be Limited. All Cash Receipts Should Be Recorded Promptly. The Functions Of Record Keeping And Maintaining Custody Of Cash

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The answer is ‘the number of persons who have access to cash should be limited’. Internal control activities are in place to accomplish different operational, financial and compliance objectives. They are processes and policies that are incorporated into the everyday running of a business. Different companies will have different internal controls and objectives, which are specific to the different natures of organizations.

All the levels of the organization hold their own responsibility for internal controls that provide assurance within the business of effective and efficient meeting of the set-out objectives. Absolute assurance of meeting all of the objectives that the business sets out would be nearly impossible, however, controls are in place to ensure that only reasonable assurance can be provided, and that the chances of the objectives being met are incredibly high.

The right attitude at the very top level of the organization, in regards to internal controls, is that it’s absolutely necessary for a business to manage good internal controls. The other levels within the organization require the commitment from leadership so that they can effectively perform their dedicated roles.

The authorization and approval limits must be set and adhered to, at all times. Delegations of authority must also be documented well, and passwords need to be kept confidentiality in order to prevent abuse. The process must be managed properly, too, as well as monitored regularly so that the appropriate levels of approval are always maintained, especially when there are changes in responsibilities and roles. Internal controls are incredibly important for the success and financial prosperity of a business.

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