Of the following, which is not a control for safeguarding inventories?
A)Storing inventory in a locked warehouse.
B)Having only a person responsible for receiving inventory purchases also be responsible for shipping inventory sales.
C)Limiting inventory access to authorized employees.
D)Separating inventory accounting from inventory handling duties.

Question

Quizplus · Accepted Answer

Having only one person responsible for receiving and shipping inventory creates an opportunity for that person to commit fraud or to make errors without anyone else detecting it. A better control would be to have separate individuals responsible for each function, or to have a supervisor oversee both functions. Storing inventory in a locked warehouse, limiting inventory access to authorized employees, and separating inventory accounting from handling duties are all effective controls for safeguarding inventories.

Of the Following, Which Is Not a Control for Safeguarding