For the Most Effective Internal Control, Monthly Bank Statements Should

question 14

Multiple Choice

For the most effective internal control, monthly bank statements should be received directly from the banks and reviewed by the

• A) Controller.
• B) Cash receipts accountant.
• C) Cash disbursement accountant.
• D) Internal auditor.

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Definitions:

Random Events

Outcomes or occurrences that are unpredictable and determined entirely by chance.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, with 1 indicating certainty.

Tree Diagram

A diagram used to show the total number of possible outcomes in a probability experiment.

Simple Events

A simple event is an outcome or event that cannot be further broken down into simpler components within the context of a probability experiment.