Which of the following controls would be most successful in mitigating the theft of customer checks received in the mail?
A)Custody of receipts by the accounts receivable manager.
B)Restrictive endorsements placed on checks as soon as they arrive.
C)Weekly deposits to a secure bank.
D)Reconciliation of bank accounts each month.

Question

Quizplus · Accepted Answer

Restrictive endorsements placed on checks as soon as they arrive would be most successful in mitigating the theft of customer checks received in the mail as it adds an extra layer of security to the check, making it more difficult for unauthorized individuals to cash or deposit the check. Choice A, custody of receipts by the accounts receivable manager, may not be enough if the manager is the one committing the theft. Choice C, weekly deposits to a secure bank, may not prevent theft if the checks are stolen before they are deposited. Choice D, reconciliation of bank accounts each month, is a good control but does not directly address the issue of theft of customer checks received in the mail.

Which of the Following Controls Would Be Most Successful in Mitigating