A physical count of inventory is required even though the company uses the perpetual inventory system. This is an example of which of the following internal control activities?
A)segregation of duties
B)safeguarding of assets and records
C)checks on recorded amounts
D)clearly defined authority and responsibility

Question

Quizplus · Accepted Answer

The requirement of a physical count of inventory is an example of a check on recorded amounts, as it ensures that the recorded inventory balances are accurate and match the actual physical inventory on hand. This helps to prevent errors, such as items being incorrectly recorded as sold or misplaced inventory not being properly accounted for in the perpetual inventory system.

A Physical Count of Inventory Is Required Even Though the Company