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.

Question

Quizplus · Accepted Answer

The best control for assuring the proper custody of investment securities is the periodic comparison of investment securities with the physical securities by personnel independent of the custody and maintenance of the investment securities. This helps to identify any potential discrepancies and prevent fraud or errors. Choices A, B, and C are important controls, but they do not directly address the custody of investment securities.

Which of the Following Controls Would Be Most Effective in Assuring