Final answer:
The primary goal of internal controls for all cash payments is to ensure accuracy, reliability, prevent fraud, and safeguard company assets. Examples of these controls include segregation of duties, authorization, and record keeping.
Step-by-step explanation:
The primary goal of internal controls for all cash payments is to ensure the accuracy and reliability of financial transactions and to prevent fraud and misappropriation of funds. Internal controls help to safeguard a company's assets and promote the integrity of financial reporting.
Examples of internal controls for cash payments include:
- Segregation of duties: Ensuring that different individuals are responsible for different aspects of the cash payment process, such as receiving, recording, and reconciling payments.
- Authorization: Requiring proper authorization and approval for cash payments to ensure that they are valid and compliant with company policies.
- Record keeping: Maintaining accurate and complete records of cash transactions, such as receipts, invoices, and bank statements.