Question

Which statement below describes the internal control procedure of insuring assets and bonding key employees? P. 246 Insure Assets and Bond key Employees

A. Insuring assets against casualty and bonding employees who handle cash, reduces risk of loss.
B. Insuring assets and bonding employees makes it unlikely that a theft is uncovered.
C. Bonding employees and insuring assets increases the risk of loss.
D. Insuring assets has a cost that outweighs the risk of loss.

Answer 1

Insuring assets against casualty and bonding employees who handle cash reduces the risk of loss.

Step-by-step explanation:

The internal control procedure of insuring assets and bonding key employees is aimed at reducing the risk of loss. Insuring assets against casualty and bonding employees who handle cash helps protect the organization's assets and minimize the potential impact of any losses. For example, insuring a bank's assets, which may include cash held in vaults, reserves, loans, and bonds, can provide financial protection in the event of theft or damage.