Which of the Following Procedures Would Best Prevent or Detect

question 54

Multiple Choice

Which of the following procedures would best prevent or detect the theft of valuable items from an inventory that consists of hundreds of different items selling for $1 to $10 and a few items selling for hundreds of dollars?

• A)Maintain a perpetual inventory of only the more valuable items with frequent periodic verification of the accuracy of the perpetual inventory record.
• B)Have an independent accounting firm prepare an internal control report on the effectiveness of the controls over inventory.
• C)Have separate warehouse space for the more valuable items with frequent periodic physical counts and comparison to perpetual inventory records.
• D)Require a manager's signature for the removal of any inventory item with a value above $50.

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Definitions:

Harry S Truman

The 33rd President of the United States, serving from 1945 to 1953, known for implementing the Marshall Plan and ordering the atomic bombings of Hiroshima and Nagasaki.

Desegregation

The process of ending the separation of two groups usually referring to racial segregation.

Military

The armed forces of a country, responsible for defending it from external threats and ensuring internal security.

Jackie Robinson

The first African American to play in Major League Baseball in the modern era, breaking the baseball color line when he started at first base for the Brooklyn Dodgers in 1947.