Question

For proper segregation of duties in cash disbursements, the person who signs checks also:

A. Reviews the monthly bank reconciliation.
B. Returns the checks to accounts payable.
C. Is denied access to the supporting documents.
D. Is responsible for mailing the checks.

Answer 1

The person who signs checks in cash disbursements has the responsibility to review the monthly bank reconciliation, return checks to accounts payable, and have access to supporting documents.

Step-by-step explanation:

In proper segregation of duties in cash disbursements, the person who signs checks also has certain responsibilities. One of these responsibilities is to review the monthly bank reconciliation. This helps ensure that the cash disbursements recorded in the accounting system match the transactions reflected in the bank statement.

Another responsibility is to return the checks to accounts payable. This allows for proper documentation and record-keeping of the checks issued.

The person who signs checks should also have access to the supporting documents, rather than being denied access. This is important for accountability and verification purposes.

However, the responsibility of mailing the checks usually falls on a different person, as a safeguard against potential fraud or errors.