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NEW QUESTION: 1

A. Option D
B. Option A
C. Option B
D. Option C
Answer: C

NEW QUESTION: 2
When an entity uses a trust company as custodian of its marketable securities, the possibility of concealing
fraud most likely would be reduced if the:
A. Trust company places the securities in a bank safe-deposit vault under the custodian's exclusive
control.
B. Interest and dividend checks are mailed directly to an entity employee who is authorized to sell
securities.
C. Trust company has no direct contact with the entity employees responsible for maintaining investment
accounting records.
D. Securities are registered in the name of the trust company, rather than the entity itself.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. When an entity uses a trust company as custodian of its marketable securities, the
possibility of concealing fraud would be reduced if the trust company deals only with the person reconciling
the accounts, and not with the employees responsible for maintaining investment records.
Choice "B" is incorrect. The securities should be in the entity's name, and not the trust company's.
Choice "C" is incorrect. If interest and dividend checks are mailed directly (custody of the asset) to the
employee authorized to sell the securities (authorization), incompatible duties would result which may
result in fraud being concealed.
Choice "D" is incorrect. Limiting access to the assets would reduce the possibility of theft, but would not
reduce the possibility of concealing fraud.

NEW QUESTION: 3
The Product Backlog is ordered by:
A. Size, where small items ale at the top and large items are at the bottom.
B. Items are randomly arranged.
C. Risk, where safer items are at the top, and riskier items are at the bottom.
D. The Product Owner with the most valuable items placed at the top.
Answer: D