An entity with a large volume of customer remittances by mail could most likely reduce the risk of employee misappropriation of cash by using:
A)employee fidelity bonds.
B)independently prepared mailroom prelists.
C)daily check summaries.
D)a bank lockbox system.

Question

Quizplus · Accepted Answer

Using a bank lockbox system would reduce the risk of employee misappropriation of cash because the customer remittances would be sent directly to the bank for processing, without passing through the hands of the entity's employees. This reduces the opportunity for employees to steal or misappropriate the cash.

An Entity with a Large Volume of Customer Remittances by Mail