Question

which of the following would be found in a company that has an effective system of internal controls regarding inventory? (check all that apply.) multiple select question. the person responsible for the accounting should count the inventory to assure the records agree with the physical count. limit the access to inventory to authorized personnel only. inventory is stored in a protected area. one employee is responsible for actual physical control over inventory while a different employee enters inventory information into the computer.

Answer 1

In a company with effective internal controls over inventory, access to inventory is restricted to authorized personnel, inventory is stored in a protected area, and duties are segregated among different employees to prevent fraud and ensure accuracy.

Step-by-step explanation:

In a company with an effective system of internal controls regarding inventory, you would likely find the following measures in place:

• Limited access to inventory, ensuring that only authorized personnel have the ability to interact with inventory, thereby reducing the likelihood of theft or misuse.
• Inventory being stored in a protected area to safeguard against risks such as theft, damage, or misplacement.
• A segregation of duties such that one employee is tasked with the physical control over inventory and another employee is responsible for entering inventory information into the computer system. This helps to prevent fraud and errors, as it requires more than one individual to collude to misrepresent the inventory position.

It is not advisable for the person responsible for accounting to also count the inventory, as this violates the principle of segregation of duties, which is a key element of an effective system of internal controls.