Question 4

What internal control or procedure(s) would provide protection against the following threats?

1. A production order was initiated for a product that was already overstocked in the companys warehouse.
2. A production employee stole items of work-in-process inventory
3. A production employee entered a materials requisition form into the system in order to steal $300 worth of parts from the raw materials storeroom
4. A parts storeroom clerk issued parts in quantities 10% lower than those indicated on several materials requisitions and stole the excess quantities.
5. A production manager stole several expensive machines and covered up the loss by submitting a form to the accounting department indicating that the missing machines were obsolete and should be written off as worthless.