Which of the Following Controls Would an Entity Most Likely

question 54

Multiple Choice

Which of the following controls would an entity most likely use in safeguarding against the loss of marketable securities?

• A)An independent custodian that has no direct contact with the employees who have recordkeeping responsibilities has possession of the securities.
• B)The internal auditor verifies the marketable securities in the entity's safe each year on the balance sheet date.
• C)The independent auditor traces all purchases and sales of marketable securities through the subsidiary ledgers to the general ledger.
• D)A designated member of the board of directors controls the securities in a bank safe-deposit box.

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Definitions:

Poison Control Center

A specialized service providing emergency advice and information on the handling, prevention, and treatment of poisoning incidents.

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A form of radiation therapy where radioactive material is placed inside the body to target cancer cells.

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A method of bathing an individual who is in bed and unable to bathe themselves, involving washing the entire body.

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Alterations in the normal functioning of the body's systems and processes, which can occur due to growth, aging, disease, or environmental factors.