The Auburndale startup is documenting a control route for monthly reconciliation. Which procedure should be established?
Correct Answer
D) bank review schedule
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 startup control file
bid addendum log startup control file puts the item in the wrong financial bucket, timing, base, or comparison for startup internal controls.
Option B: equipment title file license setup record
equipment title file license setup record puts the item in the wrong financial bucket, timing, base, or comparison for startup internal controls.
Option C: punchlist register business audit note
punchlist register business audit note puts the item in the wrong financial bucket, timing, base, or comparison for startup internal controls.
Memory Technique
An unlabeled Controller Sets dollar tells the wrong story.
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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