Which of the Following Controls Most Likely Would Give the Greatest

question 653

Multiple Choice

Which of the following controls most likely would give the greatest assurance that securities held as investments are safeguarded?

• A) There is no access to securities between the year-end and the date of the auditor's security count.
• B) Proceeds from the sale of investments are received by an employee who does not have access to securities.
• C) Investment acquisitions are authorized by a member of the Board of Directors before execution.
• D) Access to securities requires the signatures and presence of two designated officials.

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Definitions:

Marginal Analysis

The examination of the costs and benefits of a small (marginal) change in the production of goods or services.

Wheat Farmer

An individual or entity engaged in the cultivation of wheat crops for consumption or sale.

Fertilizer

A chemical or natural substance added to soil to increase its fertility and enhance plant growth.

Marginal Cost

The price of generating an extra unit of a good or service.