Which internal control procedure is followed when a physical count of inventory is performed in a perpetual inventory system?
A)Segregation of duties
B)Safeguarding assets and records
C)Independent verification
D)Proper authorizations

Question

Quizplus · Accepted Answer

Independent verification is followed when a physical count of inventory is performed in a perpetual inventory system. This involves having a second person verify the accuracy of the inventory count to ensure that there are no errors or discrepancies. The other options listed (segregation of duties, safeguarding assets and records, and proper authorizations) are still important internal control procedures but are not directly relevant to the physical count of inventory in a perpetual inventory system.

Which Internal Control Procedure Is Followed When a Physical Count