Which of the following is an internal control weakness for a company whose inventory of supplies consists of a large number of individual items?
A)Supplies of relatively little value are expensed when purchased.
B)The cycle basis is used for physical counts.
C)The storekeeper is responsible for maintenance of perpetual inventory records.
D)Perpetual inventory records are maintained only for items of significant value.

Question

Quizplus · Accepted Answer

Having the storekeeper responsible for maintenance of perpetual inventory records creates a lack of segregation of duties, which is a weakness in internal control. The same person responsible for the physical control of inventory should not also be responsible for maintaining the records of that inventory. This increases the risk of errors or fraud going undetected.

Which of the Following Is an Internal Control Weakness for a Company