Tyler Jones is authorized to prepare and sign checks for the company. He also enters the checks into the ledger. He wrote a $500.00 check to Jones Repair, a fictitious company and entered the check into the ledger as a repair expense. He deposited the check into his own account. Which of the following internal controls would have prevented the theft?

All checks require two signatures.

All checks require a voucher or invoice.

All payments and purchases are made by check.

The bank reconciliation is completed monthly.

Question

Tyler Jones is authorized to prepare and sign checks for the company. He also enters the checks into the ledger. He wrote a $500.00 check to Jones Repair, a fictitious company and entered the check into the ledger as a repair expense. He deposited the check into his own account. Which of the following internal controls would have prevented the theft?

All checks require two signatures.

All checks require a voucher or invoice.

All payments and purchases are made by check.

The bank reconciliation is completed monthly.