The Counting of the Inventory Should Be Done by Employees

question 130

True/False

The counting of the inventory should be done by employees who are NOT responsible for either custody of the inventory or keeping inventory records.

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Definitions:

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.

Fraud Triangle

A theoretical model that asserts three factors must be present for an individual to commit fraud: motivation, opportunity, and rationalization.

Financial Statement Fraud

The intentional misrepresentation or omission of data in a company's financial reports, done to mislead users of those statements.