The Frist Corporation has the following internal controls related to inventory:

1. Only authorized inventory warehousing personnel are allowed in inventory storage areas.

2. All inventory products are stored in warehousing areas that are segregated from other storage areas used to house equipment and supplies.

3. All inventory held on consignment at Frist Corporation is stored in a separate area of the warehouse.

Required:

For each of the internal controls:

a . Identify the related transaction-related audit objective(s) affected by the control.

b . Describe risks the control is designed to mitigate.

c . Design a test of control to determine if the control is operating effectively.

Answer rating: 100% (QA)

Answer 1 Only authorized inventory warehousing personnel are allowed in inventory storage areas a Th... View the full answer