5.A utility company with a large investment in repair vehicles would most likely implement which internal control to reduce the risk of vehicle theft of loss?

A.Review insurance coverage for adequacy.

B.Systematically account for all repair work orders.

C.Physically inventory vehicles and reconcile the results with the accounting records.

D.Maintain vehicles in a secured location with release and return subject to approval by a custodian.

D yes. Physical control of assets is a preventive control that reduces the likelihood of theft or other loss. Keeping the vehicles at a secure location and restricting access establishes accountability by the custodian and allows for proper authorization of their use.

A no. insurance provides for indemnification if loss or theft occurs. It reduces financial exposure but does not prevent the actual loss or theft.

B no. an internal control designed to ensure control over repair work performed has no bearing on the risk of loss.

C no Taking an inventory is a detective, not a preventive, control,