Question

Explain how a voucher system strengthens control over cash disbursements. (Check all that apply.)

a) Requires additional paperwork.

b) Increases the risk of errors.

c) Provides a clear audit trail.

d) Allows unauthorized access to funds.

Answer 1

A voucher system strengthens control over cash disbursements through additional paperwork and a clear audit trail, while reducing the risk of errors and preventing unauthorized access to funds.

Step-by-step explanation:

A voucher system strengthens control over cash disbursements by providing a clear audit trail and requiring additional paperwork. It does not increase the risk of errors or allow unauthorized access to funds.

1. Requires additional paperwork: A voucher system involves the use of vouchers or written authorization to disburse cash. This creates a paper trail that records and documents each disbursement, which helps strengthen control over cash.
2. Increases the risk of errors: This statement is incorrect. A voucher system actually helps reduce the risk of errors as it requires proper documentation and authorization for each cash disbursement.
3. Provides a clear audit trail: A voucher system creates a clear audit trail by recording and documenting each cash disbursement. This makes it easier to track and review the use of cash.
4. Allows unauthorized access to funds: This statement is incorrect. A voucher system requires proper authorization for cash disbursements, helping to prevent unauthorized access to funds.