Which of the Following Controls Would an Entity Most Likely

question 58

Multiple Choice

Which of the following controls would an entity most likely use in safeguarding against the loss of marketable securities?

• A) An independent trust company that has no direct contact with the employees who have recordkeeping responsibilities has possession of the securities.
• B) The internal auditor verifies the marketable securities in the entity's safe each year on the balance sheet date.
• C) The independent auditor traces all purchases and sales of marketable securities through the subsidiary ledgers to the general ledger.
• D) A designated member of the board of directors controls the securities in a bank safe-deposit box.

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Definitions:

Detached

Being emotionally disengaged or separated from a situation, often to maintain objectivity or prevent bias.

Neurotic Needs

Psychological needs that are compulsive and unrealistic, often resulting from anxiety and insecurity.

Horney

Karen Horney was a psychoanalyst who contributed theories on neurosis, personality, and the concept of the "true self" versus the "ideal self."

Neurotic Trends

Patterns of thought or behavior characterized by negative emotions, anxiety, or unhealthy coping mechanisms, often impacting an individual's overall well-being.