Which of the following is an internal control weakness for a company whose inventory of supplies consists of a large number of individual items?
A)The cycle basis is used for physical counts.
B)Supplies of relatively little value are expensed when purchased.
C)Perpetual inventory records are maintained only for items of significant value.
D)The storekeeper is responsible for maintenance of perpetual inventory records.

Question

Quizplus · Accepted Answer

The storekeeper being responsible for maintenance of perpetual inventory records is an internal control weakness as it increases the risk of errors or fraud in the recording of inventory transactions. It is important to have segregation of duties between the custody and record-keeping of inventory to prevent errors and fraud.

Which of the Following Is an Internal Control Weakness for a Company