When auditing with "fraud awareness," auditors should especially notice and follow up employee activities under which of these conditions?

Multiple Choice

Cash disbursement and bank statement reconciliation responsibilities are restricted to the cashier to improve accountability.

The petty cash box is always locked in the desk of the custodian to improve security.

The board of directors reviews and approves all investment transactions to prevent unauthorized transactions.

The company counts inventory on a cycle basis throughout the year without performing a complete inventory observation at year$-$end to improve efficiency.