Under Question -4, why is the vouchers payable department having both the authorization and record keeping function? I thought it's the treasurer who approves the voucher package prepared by the voucher payable department and then mails the check. And lastly, the package is sent back to the voucher payable department for further records
Hi Sneha and thanks for your comment. The treasurer should be the check signer therefore the auditor would not want to see a situation where the treasurer authorizes the payment and then signs the check. The payment is authorized by vouchers payable. Vouchers payable may prepare the check unsigned and forward it to cash disbursements for signature of the treasurer.
Thank you so much for this! ✔
Very helpful! Thank you!
Under Question -4, why is the vouchers payable department having both the authorization and record keeping function? I thought it's the treasurer who approves the voucher package prepared by the voucher payable department and then mails the check. And lastly, the package is sent back to the voucher payable department for further records
Hi Sneha and thanks for your comment. The treasurer should be the check signer therefore the auditor would not want to see a situation where the treasurer authorizes the payment and then signs the check. The payment is authorized by vouchers payable. Vouchers payable may prepare the check unsigned and forward it to cash disbursements for signature of the treasurer.
@@DariusClarki75 Understood. Thank you 🙂