Final answer:
A bank lockbox system and approval of all disbursements by an individual independent of cash receipts would be the most likely controls to reduce the risk of diversion of customer receipts by a company's employees.
Step-by-step explanation:
The control measure that would most likely reduce the risk of diversion of customer receipts by a company's employees is a bank lockbox system. A bank lockbox system involves having a third-party bank collect and process customer receipts directly, instead of the company's employees. This reduces the opportunity for employees to divert or misuse the funds. The process typically involves customers sending their payments directly to a post office box that is managed by the bank. The bank then collects the payments, processes them, and deposits the funds directly into the company's bank account.
Another control measure that can help reduce the risk of diversion is the approval of all disbursements by an individual independent of cash receipts. This means that a separate individual, who is not responsible for handling or processing customer receipts, reviews and approves all outgoing payments. This helps ensure that disbursements are made properly and are not used to cover up any diverted funds.
The other two control measures mentioned, monthly bank cutoff statements and prenumbered remittance advices, are important for monitoring and reconciling transactions, but they may not directly reduce the risk of diversion. Monthly bank cutoff statements provide an overview of all transactions processed by the bank during a specific period, while prenumbered remittance advices help in tracking and matching payments received with customer invoices.