Question

Reconciliation of the bank account should not be performed by an individual who also?

1) Processes cash disbursements.
2) Has custody of securities.
3) Prepares the cash budget.
4) Reviews inventory reports.

Answer 1

When reconciling a bank account, an individual who has custody of securities should not perform the task.

Step-by-step explanation:

The correct answer is 2) Has custody of securities.

When reconciling a bank account, it is important to have proper segregation of duties to prevent potential fraud or errors. An individual who has custody of securities should not perform the bank reconciliation because they have access to valuable assets and could manipulate the records to cover up any discrepancies.

The other options mentioned in the question are all tasks that can be performed by different individuals who do not have direct access to securities or the ability to manipulate financial records.