A formal review and reporting of obsolete, slow-moving, damaged, and overstated inventory items:
A) is an internal control designed to prevent the overstatement of inventory through the inclusion of obsolete inventory.
B) involves reviewing perpetual inventory master files for inventory turnover and holding discussions with engineering or production personnel.
C) should be done by a competent employee.
D) all of the above

Question

Quizplus · Accepted Answer

All of the options are correct. This review is an internal control that prevents overstatement, involves reviewing inventory turnover through perpetual inventory master files, and should be done by a competent employee.

A Formal Review and Reporting of Obsolete, Slow-Moving, Damaged, and Overstated