Final answer:
The correct option for who should receive and review monthly bank statements for the most effective internal control is the internal auditor(option d). This ensures an independent assessment, avoiding conflicts of interest and adhering to the principle of segregation of duties.
Step-by-step explanation:
For the most effective internal control, monthly bank statements should be received directly from the banks and reviewed by the internal auditor. This approach ensures an independent and objective review, which is essential in detecting any discrepancies, fraudulent activities, or errors.
The internal auditor is not directly involved in the processes of cash receipts or cash disbursements, enabling them to provide an unbiased assessment of the bank statements in comparison to the company's own records. By having the internal auditor review the statements, the company upholds the principles of segregation of duties, a key element of strong internal controls.
It is important to understand that the controller, while having overall responsibility for financial management, may not be the best choice for this task due to the potential for a conflict of interest if they are also involved in authorizing transactions. Similarly, the cash receipts accountant and the cash disbursement accountant are too closely involved in the handling of cash and banking transactions to conduct an independent review. Therefore, the correct option for who should receive and review the monthly bank statements is the internal auditor.