Which of the following does not represent an effective segregation of duties in the inventory process?
A) Responsibility for reviewing inventory evaluations and approving changes to inventory valuations (e.g., write-downs or write-offs) should be separated from the maintenance of perpetual inventory records
B) Responsibility for reviewing inventory evaluations and approving changes to inventory valuations (e.g., write-downs or write-offs) should be separated from the maintenance of perpetual inventory records.
C) The functions of custody of inventory and the responsibility for the maintenance of the inventory master file records should be separated.
D) The clerks who handle maintenance of perpetual inventory records should also handle recording the receipt of shipments from vendors.

Question

Quizplus · Accepted Answer

Option D represents an ineffective segregation of duties in the inventory process because the same clerks handle both maintenance of perpetual inventory records and recording receipt of shipments from vendors. This increases the risk of errors, fraud, and irregularities. The other options represent effective segregation of duties by separating responsibilities for different inventory-related functions.

Which of the Following Does Not Represent an Effective Segregation