Question

What internal accounting control(s) would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent, he claims the goods were never received?

Answer 1

The most effective internal accounting control to prevent a storekeeper from taking inventory home and falsely claiming that goods were never received is segregation of duties.

Step-by-step explanation:

The most effective internal accounting control to prevent a storekeeper from taking inventory home and falsely claiming that goods were never received is segregation of duties.

Segregation of duties involves assigning different people to handle different aspects of the inventory process, such as receiving, storing, and accounting for inventory. This ensures that no one person has complete control over all aspects of the inventory and reduces the risk of fraud and theft.

For example, the store can implement a system where one employee receives and records the inventory, a different employee stores and tracks the inventory, and another employee reconciles the inventory records with the sales records. By separating these duties, it becomes more difficult for the storekeeper to manipulate the inventory records.