The Use of Fidelity Bonds Protects a Company from Embezzlement

question 35

Multiple Choice

The use of fidelity bonds protects a company from embezzlement loses and also:

• A)Minimizes the possibility of employing persons with dubious records in positions of trust.
• B)Reduces the company's need to obtain expensive business interruption insurance.
• C)Allows the company to substitute the fidelity bonds for various parts of internal control.
• D)Protects employees who made unintentional errors from possible monetary damages resulting from such errors.

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