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We discussed internal controls with regards to cash functions in Chapter 6, as well as briefly examined internal controls over inventories in Chapter 5. One of the primary actions taken by companies holding inventories is conducting a physical count of inventory at least once per year.
Besides taking inventory counts, what other steps or controls can be put into place with regards to inventory? Discuss any physical controls (i.e. non-computer based) as well as automated (i.e. computer-based) controls that can be implemented to safeguard inventories. What is the goal for each control you noted? Please indicate at least 3 controls or actions that can be taken to help minimize loss of inventory and maintain accurate inventory records.
Once you have addressed these points above, please also respond to 2 other students’ posts with at least 3-6 sentences of discussion that is relevant, value-adding, and thought-provoking. Is there anything in their post that you did not consider in your own post? Is their solutions towards preventing or detecting fraud or errors feasible?
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