Which is a good internal control mechanism for cash disbursements?

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1106700

2026-03-25 11:25

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A good internal control mechanism for cash disbursements is the use of a segregation of duties policy. This involves separating responsibilities among different employees, such as having one person authorize payments, another person prepare checks, and a third person reconcile bank statements. Additionally, implementing regular audits and requiring supporting documentation for all disbursements can further enhance control and reduce the risk of fraud.

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