In connection with the client's physical count of inventory, adequate controls include:
A) adequate control over count sheets or tags.
B) proper instructions for the physical count and supervision by responsible personnel.
C) independent internal verification including reconciliation of physical counts with perpetual inventory master files.
D) all of the above

Question

Quizplus · Accepted Answer

All of the choices are adequate controls that should be in place during the physical count of inventory. Adequate control over count sheets or tags helps ensure that all items are counted and that the count is accurate. Proper instructions for the physical count and supervision by responsible personnel ensures that the count is done consistently and correctly. Independent internal verification including reconciliation of physical counts with perpetual inventory master files helps to identify any discrepancies and ensure that inventory records are accurate.

In Connection with the Client's Physical Count of Inventory, Adequate