Final answer:
A proof of cash disbursements is an effective method to uncover checks written for improper amounts, fraudulent checks, and misstatements in cash records, as it reconciles accounting records with bank statements.
Step-by-step explanation:
The statement that a proof of cash disbursements is NOT effective for discovering checks written for an improper amount, fraudulent checks, or misstatements where the dollar amount appearing in the cash disbursements records is incorrect is false. A proof of cash disbursement is a process that involves reconciling the cash payments recorded in the accounting records against the actual bank statements. The main objectives are to verify that each disbursement is backed by a proper authorization, to determine that the amounts are correctly recorded, and to ensure that payments are properly reflected on the bank statement. Therefore, this process can uncover checks written for improper amounts, fraudulent activities, as well as discrepancies between recorded transactions and the actual bank statement entries.