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Running background checks for newly hired employees handling high-dollar value inventory is a preventative internal control.

True False

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Final answer:

Running background checks is a preventative internal control measure aimed at reducing theft or fraud risk by verifying the trustworthiness of new employees handling valuable inventory.

Step-by-step explanation:

Running background checks for newly hired employees handling high-dollar value inventory is indeed a preventative internal control. This process helps to mitigate the risk of theft or fraud by ensuring that employees entrusted with valuable company assets have a satisfactory history that suggests they are trustworthy and reliable. Preventative controls are proactive measures taken to prevent errors or irregularities; in this case, thorough vetting of potential employees handling high-value inventory is essential to safeguarding the assets from potential internal threats

User Ali Gangji
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