Which of the Following Internal Controls Most Likely Would Reduce

question 67

Multiple Choice

Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity's employees?

• A)A bank lockbox system.
• B)Prenumbered remittance advices.
• C)Monthly bank reconciliations.
• D)Daily deposit of cash receipts.

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Definitions:

Ethics Review

A formal examination of research proposals to ensure they meet ethical standards, particularly regarding the treatment of participants and data handling.

Informed Consent

A legal and ethical requirement ensuring individuals are fully aware of and understand the implications of participating in a particular procedure or activity.

Deception

The act of misleading or lying to others, often used as a tactic in research to maintain the integrity of the study’s outcome.

Random Assignment

A method used in experiments to evenly distribute participants across treatment and control groups, minimizing bias.