Which of the following controls would a company most likely use to safeguard marketable securities when an independent trust agent is not employed?

Question

Quizplus · Accepted Answer

Option B is the most likely control to safeguard marketable securities when an independent trust agent is not employed, as it involves two company officials being present to access the securities, which are kept in a bank safe-deposit box. This control ensures that there is more than one person responsible for the securities and that they are kept in a secure location. Option A involves periodic reviews by the investment committee, which may not be sufficient to prevent theft or misappropriation of the securities. Option C relates to tracing of transactions but does not address physical security of the securities. Option D involves verification by the chairman of the board, but it may not provide adequate physical security for the securities.

Which of the Following Controls Would a Company Most Likely