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:

Libel

A written defamation that unjustly harms someone's reputation through false statements.

Slander Of Goods

A statement alleging that the goods of a competitor are defective, shoddy or injurious to the health of a consumer.

Maliciously

Acting with the intent to harm or cause injury to another, often motivated by spite or ill will.

Slander Of Title

An untrue statement about the right of another to the ownership of goods.