Why is it important to verify that the amounts on a cheque agree?

Verifying that the amounts on a cheque agree is crucial primarily to prevent payment discrepancies and fraud. When the figures on a cheque—such as the written amount and the numerical amount—do not match, it raises suspicions of potential wrongdoing or mistakes. This discrepancy can result in an incorrect payment being processed, leading to financial losses for the payer or payee.

Furthermore, accurate amounts help maintain trustworthy financial records, which is essential for both personal and business accounts. In a business context, ensuring that cheque amounts are correct also upholds the integrity of financial reporting and audits. By double-checking these figures, individuals and organizations can avoid the complications that arise from fraudulent activities or simple errors, thus safeguarding their financial assets and adhering to responsible financial practices.