To ensure the accuracy of the inventory summary sheets during a physical inventory count,
A)the employee is required to count all items twice for the sake of verification.
B)the items counted are compared to the inventory account balance.
C)a second employee or auditor counts the inventory and compares the result to the count made by the first employee.
D)prenumbered inventory tags need not be used.

Question

Quizplus · Accepted Answer

Having a second employee or auditor count the inventory and compare the result to the count made by the first employee is the most effective method for ensuring the accuracy of the inventory summary sheets during a physical inventory count. This acts as a check and balance system to identify any discrepancies and ensure that the final count is accurate. Counting items twice or using prenumbered inventory tags may also be helpful, but they are not as reliable as having a second person verify the count. Comparing the items counted to the inventory account balance is also a useful step, but it may not catch all errors (such as items that were lost, stolen, or misplaced).

To Ensure the Accuracy of the Inventory Summary Sheets During