Sound internal control dictates that immediately upon receiving checks from customers by mail, a responsible employee should Multiple Choice Add the checks to the daily cash summary. Verify that each check is supported by a pre-numbered sales invoice. Prepare a summary listing of checks received. Record the checks in the cash receipts journal.

C. Prepare a summary listing of checks received.

Explanation:

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The main purpose of internal controls is to guarantee that loss is eliminated as there's an accurate and reliable accounting system.

Basically, internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency. When internal controls are properly executed, it helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.

Hence, sound internal control dictates that immediately upon receiving checks from customers by mail, a responsible employee should prepare a summary listing of checks received by duplicating it.

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