Question

Separation of the check-writing and accounts payable functions is designed to mitigate the threat of:

a. failure to take advantage of discounts for prompt payment
b. theft of cash
c. duplicate payments
d. paying for items not received

Answer 1

The separation of check-writing and accounts payable functions is a safety measure to prevent theft of cash by ensuring that no one individual has control over all aspects of financial transactions.

Correct option is b. theft of cash.

Step-by-step explanation:

The separation of the check-writing and accounts payable functions is designed to mitigate the threat of theft of cash.

This internal control practice is an essential part of a company's financial protocols and helps to prevent unauthorized transactions and reduce the risk of fraudulent activities. By segregating duties, the company ensures that no single individual has control over all aspects of the financial transaction process, making it difficult for theft to occur without detection.