Verifying the accuracy of signatures on checks is a example of an internal control?
2007-10-20 12:30:28 · 3 answers · asked by luckyplaya23 2 in Business & Finance ➔ Other - Business & Finance
True, verifying signatures on cheques before you send them out is a preventive control. This makes sure the clerk didn't forge the boss's signature. At the same time it's a good idea to ensure the payee is a legitimate payee. There's no way you can check the accuracy of signature on cheques that you receive from customers. You just go and bank them in.
2007-10-21 02:39:05 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
You don't specify who is generating the checks?? are they payable or receivables??? If they are payable then yes it is an internal function but if proper procedures are followed there should be no need to do this as for receivables it is the bank or financial institutes responsibility to make sure the signatures are valid..
2007-10-20 23:19:32 · answer #2 · answered by ? 6 · 0⤊ 0⤋
yes of course
2007-10-21 17:14:00 · answer #3 · answered by Dsalah s 3 · 0⤊ 1⤋