An Entity with a Large Volume of Customer Remittances by Mail

question 15

Multiple Choice

An entity with a large volume of customer remittances by mail could most likely reduce the risk of employee misappropriation of cash by using:

• A)employee fidelity bonds.
• B)independently prepared mailroom prelists.
• C)daily check summaries.
• D)a bank lockbox system.

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Definitions:

Standard Error

A measure of the dispersion or spread of sample means around the population mean in statistics.

Simple Random Sampling

A sampling method where each member of a population has an equal chance of being included in the sample.

Confidence Interval

A range of values, derived from the sample data, that is likely to contain the value of an unknown population parameter.

Standard Deviation

A metric indicating the degree of spread or distribution among a collection of numbers.