Which of the Following Internal Control Activities Most Likely Addresses

question 23

Multiple Choice

Which of the following internal control activities most likely addresses the completeness assertion for inventory?

• A)The work-in-process account is periodically reconciled with subsidiary inventory records.
• B)Employees responsible for custody of finished goods do not perform the receiving function.
• C)Receiving reports are prenumbered and the numbering sequence is checked periodically.
• D)There is a separation of duties between the payroll department and inventory accounting personnel.

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Definitions:

Payable

Refers to an amount of money that is owed and should be paid, often within a specific period of time.

Clarity

The quality of being easily understood or free from ambiguity.

Order Instrument

A negotiable instrument that is payable “to the order of an identified person” or “to an identified person or order.”

Payee

The individual or entity to whom a check, draft, or note is made payable.