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NEW QUESTION: 1
Section A (1 Mark)
Which of the following statements is/are correct with respect to naive diversification?

A. Only II
B. Both of the above
C. None of the Above
D. Only I
Answer: B

NEW QUESTION: 2
Which of the following controls would an entity most likely use in safeguarding against the loss of
marketable securities?
A. A designated member of the board of directors controls the securities in a bank safe-deposit box.
B. The internal auditor verifies the marketable securities in the entity's safe each year on the balance
sheet date.
C. An independent trust company that has no direct contact with the employees who have recordkeeping
responsibilities has possession of the securities.
D. The independent auditor traces all purchases and sales of marketable securities through the subsidiary
ledgers to the general ledger.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. The control most likely to be used by an entity in safeguarding against the loss of
marketable securities is that an independent trust company that has no direct contact with the employees
who have recordkeeping responsibilities, has possession of the securities. For good internal control over
the safeguarding of any asset, the individual who has the recordkeeping responsibilities over that asset
should never have access to it.
Choice "B" is incorrect. Verifying the securities held in the entity's safe would detect that the loss occurred,
but it would not prevent the loss.
Choice "C" is incorrect. Tracing purchases and sales of marketable securities would verify that the
transactions were properly recorded, but would not safeguard against loss.
Choice "D" is incorrect. Having one person control the securities in a bank safe-deposit box is a weakness
in internal control because that one person can steal the securities. A better system requires that at least
two employees have joint control over the securities in a bank safe-deposit box.

NEW QUESTION: 3
The connection to the ClusterXL member 'A' breaks. The ClusterXL member 'A' status is now 'down'. Afterwards the switch admin set a port to ClusterXL member 'B' to 'down'.
What will happen?
A. ClusterXL member 'B' also left the cluster.
B. ClusterXL member 'A' is asked to come back to cluster.
C. Both ClusterXL members share load equally.
D. ClusterXL member 'B' stays active as last member.
Answer: D