Final answer:
The major control in an audit of cash that is directly affected by banks is bank reconciliation, a key process for ensuring financial accuracy. Banks facilitate a wide range of economic transactions, offering secure money storage and convenient access through various account types and payment methods. Moreover, bank supervision by governmental agencies plays a significant role in maintaining financial stability and integrity.
Step-by-step explanation:
A major control that directly affects the audit of cash is the bank reconciliation. This process involves comparing the account balances as per the bank statement with the company's own records to identify any discrepancies and adjust for them. It is a vital control to ensure the accuracy of an organization's financial statements.
Banks significantly simplify the transactions in a complex economy, allowing goods, labor, and financial capital markets to function efficiently. Without banks, individuals and businesses would need to rely on physical cash for all transactions, which is less secure and more cumbersome. A bank allows for secure storage and easy access to funds through checking accounts and savings accounts, as well as transactions through direct withdrawals, checks, or debit cards.
Bank supervision is another important aspect whereby government agencies, such as the Office of the Comptroller of the Currency and the National Credit Union Administration, ensure banks have positive net worth and manage risks appropriately.