The use of customer statements as a control device will be effective only if the employees responsible for the custody of cash received through the mail,for record keeping,and for authorization of adjustments to customers' accounts are not allowed to prepare and mail statements to customers.

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This is because if the employees responsible for the custody of cash received through the mail,for record keeping,and for authorization of adjustments to customers' accounts are allowed to prepare and mail statements to customers, they could potentially manipulate the information presented on the statements to cover up any fraudulent activities or errors. By separating these responsibilities among different employees or departments, it increases the likelihood of catching any discrepancies or fraudulent activities.

The Use of Customer Statements as a Control Device Will