An example of an internal control procedure to protect inventory is to prevent the person who records inventory purchases from having access to the inventory.

Question

Quizplus · Accepted Answer

This is an example of segregation of duties, which is an internal control procedure aimed at preventing one person from having too much control over a process. By separating the recording of inventory purchases from the physical handling of the inventory, the risk of theft, misappropriation, or error is reduced.

An Example of an Internal Control Procedure to Protect Inventory