While auditing Trowbridge Corporation's June 30, 1999 financial statements, you become aware of the following controls or procedures over Trowbridge's inventory control and inventory accounting activities:

a. No new products are produced without management's express written authorization.

b. Access to the warehouses is restricted to personnel named in a memorandum dated August 10, 1998.

c. Inventory movement into and out of storerooms and production sites is logged in journals maintained by inventory control personnel.

d. All personnel named in the August 10, 1998 memorandum (Item 2) are bonded for loss or theft.

e. Responsibility for handling inventory is segregated from inventory recording, cost accounting, and general accounting.

f. All materials release and production forms are maintained under lock and key and are distributed only to authorized personnel.

Required: 

For each control procedure, indicate:

(a) a potential error or fraud that might be prevented or detected as a result of the control procedure, and

(b) the control objective served by the control procedure. Organize your answer as follows:

Transcribed Image Text:

Control Procedure Potential Error or Fraud That Might Be Prevented or Detected Control Objective