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.

---

Definitions:

Logistic Regression

A statistical method for analyzing datasets in which there are one or more independent variables that determine an outcome, which is categorical.

Dependent Variable

A variable in an experiment or study that is expected to change in response to changes in another variable, the independent variable.

Independent Variables

Variables in an experiment or regression which are manipulated or categorized to determine their effect on dependent variables.

Degrees of Freedom

Refers to the number of independent values or quantities which can be assigned to a statistical distribution.