Which of the Following Controls Would Be Most Effective in Ensuring

question 63

Multiple Choice

Which of the following controls would be most effective in ensuring that the proper custody of assets in the investing cycle is maintained?

• A)Direct access to securities in the safety deposit box is limited to only one corporate officer.
• B)Personnel who post investment transactions to the general ledger are not permitted to update the investment subsidiary ledger.
• C)The purchase and sale of investments are executed on the specific authorization of the board of directors.
• D)Independent personnel periodically compare the recorded balances in the investment subsidiary ledger with the contents of the safety deposit box.

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Definitions:

Morally Correct

Acting in accordance with ethical principles or accepted standards of right and wrong.

Fear Of Punishment

A psychological state where an individual anticipates negative consequences or suffering due to their actions or behaviors, which can affect decision-making and behavior modification.

Lack Of Empathy

Lack of empathy refers to the inability or difficulty in understanding or sharing the feelings of another person.

Amount Of Time

The duration or period during which an action, process, or condition exists or continues.