Internal controls that should be applied when a business takes a physical count of inventory should include all of the following except:
A)Prenumbered inventory tickets.
B)A manager confirms that all inventories are ticketed only once.
C)Counters confirm the validity of inventory existence,amounts,and quality.
D)Second counts by a different counter.
E)Counters of inventory should be those who are responsible for the inventory.

Question

Quizplus · Accepted Answer

Counters of inventory should not be those who are responsible for the inventory as it increases the risk of fraud or errors. Ideally, counters should be independent of the inventory being counted to ensure accuracy and objectivity. Therefore, E is the option that should not be included in internal controls for physical counting of inventory.

Internal Controls That Should Be Applied When a Business Takes