Which of the following internal control activities most likely addresses the completeness assertion for inventory?
A)The work-in-process account is periodically reconciled with subsidiary inventory records.
B)Employees responsible for custody of finished goods do not perform the receiving function.
C)Receiving reports are prenumbered and the numbering sequence is checked periodically.
D)There is a separation of duties between the payroll department and inventory accounting personnel.

Question

Quizplus · Accepted Answer

Prenumbered receiving reports and periodic checks on the numbering sequence would help ensure that all received inventory is recorded, addressing the completeness assertion for inventory. Options A, B, and D address other internal control concerns, such as accuracy, safeguarding of assets, and prevention of fraud, but do not directly address completeness.

Which of the Following Internal Control Activities Most Likely Addresses