Ken Deangelo Company’s internal controls over cash disbursements provide for the treasurer to sign checks imprinted by a check-writing machine in indelible ink after comparing the check with the approved invoice. Identify the internal control principles that are present in these controls. Procedure Principle (1) Treasurer signs checks. (2) Checks imprinted by a machine in indelible ink. (3) Comparing check with approved invoice before signing.

Treasurer signs checks-Establishment of responsibility

Checks imprinted by a machine in indelible ink-physical control

Comparing check with approved invoice before signing-Independent internal verification.

Explanation:

The fact that the treasure is saddled with the responsibility of signing checks underscores the control that  the task is assigned signing checks is assigned to a responsible senior officer such as the treasurer.

However, putting an indelible ink on checks is a form physical control in that everyone that comes in contact with check can see that such control procedure has taken carried out.

Lastly, the comparison between checks and invoices ensures that the amount for which check is issued is in respect of genuine transaction and it is not overstated.

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b is the correct answer