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 does not confirm that all inventories are ticketed once, and only once.
C) Counters must confirm the validity of inventory existence, amounts, and quality.
D) Second counts by a different counter.
E) Counters of inventory should not be those who are responsible for the inventory.

Question

Quizplus · Accepted Answer

The internal controls that should be applied when taking a physical count of inventory should include prenumbered inventory tickets for tracking; the requirement for counters to confirm the validity of inventory existence, amounts, and quality; second counts by a different counter for accuracy; and assignment of inventory counters to individuals who are not responsible for inventory management. However, a manager not confirming that all inventories are ticketed once and only once is not an appropriate internal control and could lead to inaccuracies or fraud.

Internal Controls That Should Be Applied When a Business Takes