Which of the Following Controls Would a Company Most Likely

question 69

Multiple Choice

Which of the following controls would a company most likely use to safeguard marketable securities when an independent trust agent is not employed?

• A)The investment committee of the board of directors periodically reviews the investment decisions delegated to the treasurer.
• B)There is periodic inspection of securities in a safe or safe-deposit box by an individual independent of both the custodial and accounting responsibilities for securities.
• C)The internal auditor and the controller independently trace all purchases and sales of marketable securities from the subsidiary ledgers to the general ledger.
• D)The chairman of the board verifies the marketable securities, which are kept in a bank safe-deposit box, each year on the balance sheet date.

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Definitions:

Ethnocentrism

Ethnocentrism is the act of judging another culture solely by the values and standards of one's own culture, often leading to prejudice and discrimination.

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Leadership that achieves desired results, motivates followers, and addresses the needs of the group or organization in a proficient manner.

Transcultural Visions

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Ting-Toomey

A scholar known for her work on cross-cultural communication, particularly the concept of face-negotiation theory.