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.

---

Definitions:

High Levels

Referring to a significant degree or intensity of a particular characteristic, state, or condition.

Quality of Work Life

The degree to which employees enjoy their job environments, including their relationships with colleagues, work conditions, and work-life balance.

Chief Operating Officer

A senior executive responsible for managing the day-to-day administrative and operational functions of a company, often second in command to the Chief Executive Officer (CEO).

Top Managers

Individuals at the highest level of an organization's management who are responsible for setting strategic goals and making key decisions.