Which of the following procedures would best prevent or detect the theft of valuable items from an
Question:
a. Maintain a perpetual inventory of only the more valuable items with frequent periodic verification of the accuracy of the perpetual inventory record.
b. Have an independent accounting firm prepare an internal control report on the effectiveness of the controls over inventory.
c. Have separate warehouse space for the more valuable items with frequent periodic physical inventory counts and comparison to perpetual inventory records.
d. Require a manager’s signature for the removal of any inventory item with a value of more than $ 50.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
Question Posted: