Many companies have inventory that is easy to steal and is readily marketable.Which of the following controls helps to prevent theft and misuse of inventory?
A)physical control of inventory from time of receipt until use
B)proper access controls over the inventory master and transaction files
C)dual signatures required on all purchase orders over $10 000
D)purchase requisitions are to be approved by the production manager

Question

Quizplus · Accepted Answer

Physical control of inventory from time of receipt until use is the most effective control to prevent theft and misuse of inventory. This includes managing access to inventory storage areas, implementing security measures to restrict unauthorized access, and maintaining an up-to-date inventory record system to track all inventory movements. Proper access controls over inventory master and transaction files and purchase requisition approval also play a role in inventory control, but physical control is the front line defense against theft and misuse. Dual signatures required on all purchase orders may help prevent fraudulent purchases but does not directly address physical theft of inventory.

Many Companies Have Inventory That Is Easy to Steal and Is