Final answer:
In a sound internal control system, all cash receipts should be deposited daily intact,except for some rare exceptions.It helps ensure the accuracy and completeness of the company's financial records, and minimizes the risk of theft or misappropriation of funds.
Step-by-step explanation:
In a sound internal control system, it is generally true that all cash receipts should be deposited daily intact. This helps to ensure the accuracy and completeness of the company's financial records. By depositing cash receipts daily, businesses can minimize the risk of theft or misappropriation of funds.
For example, if a business collects cash from sales throughout the day, it is important to deposit that cash into the bank daily to prevent any temptation or opportunity for employees to use or steal the cash. Furthermore, depositing cash receipts daily allows for timely reconciliation of cash accounts and reduces the likelihood of errors or discrepancies in the financial records.
However, there may be rare exceptions to this general rule. For instance, if a business is closed on weekends or holidays, it may not be feasible to deposit cash receipts on those days. In such cases, it is important for businesses to have appropriate safeguards in place to secure the cash until it can be deposited.