Josephine joined a Big 4 accounting firm as an intern for the summer. Josephine's final project involved evaluating the firm's employee termination control activities with a goal of developing additional control activities to prevent unnecessary financial losses for the firm. Which of the following control activities might Josephine suggest that will prevent financial loss?
A) Clear all advances and employee receivables prior to the employee's final paycheck.
B) Company credit cards are collected from the employee, paid, and closed at the end of the billing cycle.
C) Remove employee's authority to act on behalf of the firm and conduct firm business.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Each of the listed control activities (clearing advances and receivables, collecting and closing company credit cards, and removing authority to act on behalf of the firm) are measures that can prevent unnecessary financial losses when an employee leaves the firm.

Josephine Joined a Big 4 Accounting Firm as an Intern