Which of the Following Is Not an Effective Control Mechanism

question 28

Multiple Choice

Which of the following is not an effective control mechanism to safeguard an organization's check stock?

• A) Boxes of blank checks should be sealed with security tape.
• B) Organizations should use check stock that is high-quality and distinctly marked.
• C) The employee in charge of the check preparation function should periodically verify the security of unused checks.
• D) Voided checks should be promptly destroyed.

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Definitions:

Annual Reports

Corporate documents that give a comprehensive summary of a company’s activities and financial performance over the preceding year.

SEC Statement

A financial disclosure or report mandated by the Securities and Exchange Commission for public companies to provide information to investors.

Auditor's Report

A formal opinion issued by an auditor based on an audit of a company's financial statements, attesting to their accuracy.

Dividends Per Share

The amount of money paid out in dividends to shareholders per share of stock held.