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Which of the following controls would ensure that securities are not lost,stolen or diverted?
Establish physical barriers over investment securities
Maintain files of authorized signatures
Segregate investment approval from accounting and from custody of securities
All of the above
- Establishing physical barriers over investment securities is crucial. It prevents unauthorized access and theft.
- Maintaining files of authorized signatures helps verify who is permitted to handle or authorize transactions, reducing the risk of fraud.
- Segregating investment approval from accounting and custody avoids conflicts of interest and ensures checks and balances. This separation is essential for internal control systems.
Correct Answer: Option 4: All of the above
These combined actions strengthen overall security by addressing physical, procedural, and personnel risks.
By: Parvesh Mehta ProfileResourcesReport error
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