Which of the Following Controls Would Be Most Effective in Assuring

question 671

Multiple Choice

Which of the following controls would be most effective in assuring that the proper custody of assets in the investing cycle is maintained?

• A) Direct access to securities in the safety deposit box is limited to only one corporate officer.
• B) Personnel who post investment transactions to the general ledger are not permitted to update the investment subsidiary ledger.
• C) The purchase and sale of investments are executed on the specific authorization of the board of directors.
• D) The recorded balances in the investment subsidiary ledger are periodically compared with the contents of the safety deposit box by independent personnel.

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Definitions:

Observable Behaviors

Actions or reactions of an individual that can be directly seen and measured, often used in psychological assessments.

Perceived

The way in which an individual interprets or understands something based on their senses and cognition.

Spider Man

A fictional superhero character appearing in American comic books published by Marvel Comics, known for his agility, web-shooting abilities, and spider-sense.

Self-Worth

An individual's internal sense of value and esteem, reflecting how they perceive their own worthiness and significance.