Which of the Following Controls Would Be Most Effective in Assuring

question 49

Multiple Choice

Which of the following controls would be most effective in assuring the proper custody of investment securities?

• A) Direct access to securities in the safety deposit box is limited to only one corporate office.
• B) Personnel who post investment security transactions in the general ledger master file are prohibited from updating the investment securities master files
• C) The purchase and sale of investment securities are executed upon the specific authorization of the board of directors.
• D) The balances in the investment security master file are periodically compared with the physical investment securities by independent personnel.

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Definitions:

Ethical Principles

The guiding concepts that inform moral judgment and conduct, determining what is right or wrong in various scenarios.

Psychological Research

The scientific study of the mind and behavior through controlled experiments, observation, and analysis.

Psychological Research

The scientific study of the mind and behavior, utilizing systematic methods and empirical evidence to answer questions about psychological functions and processes.

Empirical

Is anchored in, deals with, or can be proven by actual observation or lived experiences as opposed to theoretical ideologies or mere logical reasoning.