The internal control process of separating the custody of inventory from the accounts payable record keeping will help to minimize the risk of:
A)Fictitious purchases
B)Invalid vendors
C)Duplicate purchases
D)Incorrect amounts

Question

Quizplus · Accepted Answer

Separating the custody of inventory from the accounts payable record keeping helps to prevent fictitious purchases by ensuring that only legitimate purchases are recorded and paid for. It also helps to prevent theft or unauthorized use of inventory by ensuring that only authorized personnel have access to it. While this process may also help to prevent other types of errors or fraud, such as invalid vendors or duplicate purchases, the primary risk that it addresses is the risk of fictitious purchases.

The Internal Control Process of Separating the Custody of Inventory