Independent internal verification of the physical inventory process occurs when
A) the employee is required to count all items twice for sake of verification.
B) the items counted are compared to the inventory account balance.
C) a second employee counts the inventory and compares the result to the count made by the first employee.
D) all prenumbered inventory tags are accounted for.

Question

Quizplus · Accepted Answer

Independent internal verification involves a second party (in this case, a second employee) reviewing or checking the work performed by the first party to ensure accuracy and reliability. In this context, having a second employee count the inventory and compare the results with the first employee's count is an example of independent internal verification. This process helps in detecting errors or fraud that might have occurred during the initial count.

Independent Internal Verification of the Physical Inventory Process Occurs When