Which of the Following Controls Would Be Most Likely to Reduce

question 56

Multiple Choice

Which of the following controls would be most likely to reduce the risk of diversion of customer receipts by a company's employees?

• A)A bank lockbox system.
• B)Approval of all disbursements by an individual independent of cash receipts.
• C)Monthly bank cutoff statements.
• D)Prenumbered remittance advices.

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Definitions:

Business Sustainability

refers to the strategies and practices a company employs to manage its environmental, social, and economic impacts while ensuring longevity and success.

International Guidelines

Agreed-upon principles or criteria set by international bodies or agreements to guide actions and policies across nations.

Organisations

Entities comprising multiple people working together towards common goals or objectives, structured to accomplish tasks and achieve efficiency.

Chief Operating Officer

A senior executive responsible for managing the day-to-day administrative and operational functions of a company.