(Objectives 18-3,18-4) In testing cash disbursements for the Jay Klein Company,you have obtained an understanding of internal control. The controls are reasonably good,
Although there are not many individuals in the accounting department, there is a reasonable separation of duties in the organization. There is a separate purchasing agent who has responsibility for ordering goods and a separate receiving department for counting the duties between recording acquisitions and cash disbursements, and all information is recorded in the two journals independently. The controller reviews all supporting documents before signing the checks, and he immediately mails the check to the vendor. Check copies are used for subsequent recording.