The use of fidelity bonds protects a company from embezzlement losses and also
a. Minimizes the possibility of employing persons with dubious records in positions of trust.
b. Reduces the company's need to obtain expensive business interruption insurance.
c. Allows the company to substitute the fidelity bonds for various parts of internal control.
d. Protects employees who made unintentional errors from possible monetary damages resulting from such errors.
Answer: A
CPA Exam
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