Internal Controls That Should Be Applied When a Business Takes

question 117

Multiple Choice

Internal controls that should be applied when a business takes a physical count of inventory should include all of the following except:

• A) A manager confirms that all inventories are ticketed only once.
• B) Counters of inventory should be those who are responsible for the inventory.
• C) Counters confirm the validity of inventory existence, amounts, and quality.
• D) Prenumbered inventory tickets.
• E) Second counts by a different counter.

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Definitions:

Organization

The arrangement of elements and resources in a structured and coordinated manner to achieve desired objectives.

Reproduction

The biological process by which new individual organisms are produced from their parents.

Growth

The process of increasing in size, a vital process of living organisms and cells.

Positive-Feedback Mechanisms

Biological processes in which a change leads to an even greater change in the same direction, often leading to a rapid completion of the process.