Bank statement are diligently reviewed to ensure that amounts and signature have not been altered, is an activity for:
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A. B. C. D.C
The activity described in the question involves reviewing bank statements to ensure that amounts and signatures have not been altered. This is a critical control procedure to prevent and detect fraudulent activities that may occur through alteration of checks, withdrawal slips, or other banking documents.
The correct answer to this question is B. Bank reconciliation. Bank reconciliation is the process of comparing the balances shown on an organization's bank statement with the balances shown in its accounting records. The purpose of bank reconciliation is to identify any discrepancies or errors in the records and to ensure that the organization's financial statements accurately reflect its financial position.
One of the key steps in bank reconciliation is to review the bank statement for any signs of fraud or irregularities, such as altered amounts or signatures. By comparing the checks or withdrawal slips shown on the bank statement with the organization's records, discrepancies can be identified and investigated.
Account analysis (A) refers to the process of reviewing and analyzing an organization's financial transactions to identify trends, patterns, and anomalies. While this may be useful in identifying potential fraud, it is not directly related to the activity described in the question.
Check disbursement controls (C) are procedures designed to ensure that checks are issued only for legitimate purposes and that they are properly authorized and supported by appropriate documentation. While these controls are important for preventing fraudulent disbursements, they do not involve reviewing bank statements for alterations.
Check tampering (D) refers to the fraudulent alteration or forgery of a check, typically for the purpose of diverting funds to an unauthorized recipient. While reviewing bank statements for alterations is a key control for detecting check tampering, it is not the activity itself.