Many of the controls over inventory _______.

Question

Quizplus · Accepted Answer

Controls over inventory often overlap with controls in other cycles, such as sales and purchases. For example, the existence of controls over the accuracy of sales records affects the accuracy of inventory records. As a result, auditors must evaluate the effectiveness of controls both individually and collectively. Control redundancy is also a common practice in inventory management, so auditors must be sure to test all relevant controls to ensure that they are operating as intended. Additionally, external auditors are responsible for testing the effectiveness of internal audit's work to determine whether it can be relied upon.

Many of the Controls Over Inventory _______