Theft of incoming checks usually occurs when ________ is (are) in charge of opening the mail and recording the receipt of payments.
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A. B. C. D.A
The correct answer to the question is A. Single employee.
Theft of incoming checks is a common form of fraud that can occur when employees responsible for opening the mail and recording payments steal checks and cash them for their own benefit. This type of fraud is often referred to as "mail fraud" or "check tampering."
The answer A is correct because a single employee is the most likely perpetrator of this type of fraud. When there is only one person responsible for opening the mail and recording payments, there are fewer checks and balances in place to prevent fraud. This individual may have sole access to the incoming mail, which provides ample opportunity to steal checks without being detected. Additionally, when only one employee is responsible for these tasks, there is no one else to monitor their work or detect any discrepancies.
Answer B, two employees, may provide more oversight and make it harder for a single individual to commit fraud. However, there is still a risk that one of the two employees may be involved in the theft of incoming checks.
Answer C, more than two employees, would generally provide more oversight and make it harder for one person to commit fraud. However, there is still a risk that multiple employees may be involved in the theft of incoming checks and work together to cover up the fraud.
Therefore, the correct answer is A. Single employee. To prevent this type of fraud, it is important to have strong internal controls, such as having multiple employees involved in the process of opening the mail, recording payments, and reconciling bank statements. Additionally, regular audits and reviews of financial records can help detect and prevent fraud.