Suggested Answer:A🗳️
Choice "A" is correct. A lockbox system is the best means of preventing defalcation of cash by employees because the employees never have direct access to cash receipts. Choice "B" is incorrect. The use of prenumbered remittance advices is not effective in preventing theft of receipts by employees because it does not prevent employee access to cash receipts. Choice "C" is incorrect. While the performance of monthly bank reconciliations is a good control, it would not be effective in preventing the theft of receipts because it does not prevent employee access to cash receipts. (It might, however, be effective at detecting a theft that has already occurred). Choice "D" is incorrect. Daily deposit of cash receipts is not an effective control for preventing theft of receipts by employees because it does not prevent employee access to cash receipts.
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