One application of internal control when taking a physical count of inventory is the use of pre-numbered inventory tickets.

Question

Quizplus · Accepted Answer

Pre-numbered inventory tickets help to ensure that all inventory items are counted and recorded accurately, by assigning a unique identifier to each item. This helps to prevent errors or fraud by ensuring that all items are accounted for and that duplicate counts or omissions are avoided. Additionally, pre-numbered tickets can provide a clear audit trail for inventory movements and adjustments, making it easier to identify discrepancies or irregularities in the count.

One Application of Internal Control When Taking a Physical Count