Narbona, CPA, is reviewing controls over cash received through a bank night depository. Which controls would she find most important?

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The question asks about the most important controls Narbona, CPA should review for cash received through a bank night depository.
The provided answer states: 'Dual control (joint custody) is established over the contents of the night depository box from the time of removal until initial recording is completed.' This option emphasizes dual control, which is a foundational internal control principle for cash handling. By ensuring that two or more individuals are involved in every step from removal of cash to initial recording, the organization reduces the risk of theft, error, and misappropriation, since no single person has custody and recording responsibility alone.
In the context of a night depository, key control objectives include safeguarding cash while in transit, preventing concealment or tampering during extraction from the depository box, and ensuring prompt and accurate entry into the accounting records. Dual custody addresses these objectives by separating custody from custody transfer and from recording, thereby creating accountability and enabling supervisory review if discrepancies arise.
Because the other answer choices are not provided in the prompt, a direct comparison cannot be made here. However, in general, strong controls for night depositories often also involve timely sealing, secured containers, restricted access to depository facilities, independent verification of counts, and prompt reconciliation of box contents with cash receipt records. The absence of any alternative options in this list means the highlighted control focuses on the critical separation of duties appropriate for cash received through a night depository.
Overall, the principle of dual control is a fundamental and highly effective control for preventing theft and errors in the handling of cash from night depositories, aligning with standard internal control frameworks.

ACG442_A_2025SPRING Chapter 06 Class Quiz

Narbona, CPA, is reviewing controls over cash received through a bank night depository. Which controls would she find most important?

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ACG442_A_2025SPRING Chapter 06 Class Quiz

Narbona, CPA, is reviewing controls over cash received through a bank night depository. Which controls would she find most important?

View Explanation

Log in for full answers

Similar Questions

During a quarterly audit at Aerodynamic Aviation, Adam and Tessa discover irregularities in several cash-handling records, raising suspicion about a possible dishonest employee. According to good risk-management practices, which action helps reduce or prevent losses from internal dishonesty?

At an FBO reviewing its internal controls, Johan explains why strong record systems matter. What internal benefit does a good record system provide?

Hiring qualified personnel is an example of a ________ control, and procedures to resubmit rejected transactions are an example of a ________ control.

A control activity can be either a prevention control or a monitoring control.

Part 1The control procedure of prohibiting employees from accepting gifts is designed to reduce the risk of​ ________. Part 1 A. theft of inventory B. kickbacks C. fraudulent cash disbursements D. stockouts E. None of the above

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

Hiring qualified personnel is an example of a control, and procedures to resubmit rejected transactions are an example of a control.

Part 1The control procedure of prohibiting employees from accepting gifts is designed to reduce the risk of ________. Part 1 A. theft of inventory B. kickbacks C. fraudulent cash disbursements D. stockouts E. None of the above