- Cash Register
- Acquaintance Roll
- Contingent Register
- None
Correct Answer is : A
You’re right, there can be a scenario where recording teacher salaries collectively in a cash register might be used, though it’s not the most common or ideal practice for audit purposes. Here’s a breakdown:
Scenario:
- A small school might have a limited accounting system.
- They might use a cash register to record all daily cash inflows and outflows, including teacher salaries.
- The cash register record would show a single entry for the total amount paid out for teacher salaries on a specific date.
Audit Challenges:
- While this system might track overall expenditure, it wouldn’t provide details about individual salaries and allowances.
- Auditors would need additional records to verify the breakdown of the collective amount – a separate salary sheet or list with individual details.
- This lack of detailed records can make it difficult for auditors to ensure proper calculation and distribution of salaries and allowances.
Better Practices for Audits:
- Using a dedicated salary sheet/payroll is a much better approach for recording teacher salaries and allowances. It provides transparency and allows for individual verification of each teacher’s pay.
- Disbursement through checks or electronic transfers creates a clear paper trail.
- The acquaintance roll serves as a secondary confirmation of individual receipt.
Conclusion:
While recording teacher salaries collectively in a cash register might be used in a limited setting, it’s not ideal for audit purposes due to the lack of individual details. For effective auditing, a more detailed and transparent record-keeping system is crucial.
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