Cardinal Company requires that all documents supporting a check be canceled by punching a hole through the packet. Why is this practice required? What might happen if it were not?
 

Punching a hole through supporting documents reduces the opportunity for fraud. Without this control procedure, a dishonest employee could resubmit documents for payment a second time. The employee could change the payee's address and have the check sent to an address the employee controls. Or the employee could arrange to have the second payee split the payment with the employee. Canceling the documents makes it difficult to get approval for a duplicate payment.