Question

What procedures can help protect cash disbursements?

Answer 1

Procedures that will help protect cash disbursements are:-
1) All disbursements should be made by check.
2) Renumbered checks should be kept in a secure place.
3) There should be Segregation of duties ,authorization, recording, and custody functions for cash disbursements
4) Cash disbursement should supporting documentation and authorized signatures required for payment.
5) Vouchers or Invoice should be clearly labeled and filed for reference.
6) Checks prepared uncorrectly should be Void and retain them to prevent unauthorized use.