The Port Charlotte startup is documenting a control route for vendor invoice approval. Which procedure should be established?
Correct Answer
C) AP approval workflow
Startup internal controls should define cash receipts, payables approval, and bank review schedules.
Why This Is the Correct Answer
Startup internal controls should define cash receipts, payables approval, and bank review schedules.
Why the Other Options Are Wrong
Option A: bid addendum log operations startup note
bid addendum log operations startup note puts the item in the wrong financial bucket, timing, base, or comparison for startup internal controls.
Option B: equipment title file startup control file
equipment title file startup control file puts the item in the wrong financial bucket, timing, base, or comparison for startup internal controls.
Option D: punchlist register license setup record
punchlist register license setup record puts the item in the wrong financial bucket, timing, base, or comparison for startup internal controls.
Memory Technique
Startup Internal ledger for Controller Sets: put controls in the right drawer.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Internal controls for cash, payables, and bank review; verify the startup duty, registration, or financial setup before answering.
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