Question
ABC Technology is a small private company that is in the business of selling compute parts to distributors. The company maintains a small warehouse in
ABC Technology is a small private company that is in the business of selling compute parts to distributors. The company maintains a small warehouse in Miami that is staffed by the owner and two other employees. Company sales amount to $500,000 a year. The owner is considering expanding into another warehouse in Ft. Lauderdale and is leaving the operations of the Miami warehouse to the two existing employees. What would be the best control structure over inventory in this case?
A. Reconcile perpetual inventory records to physical inventory counts even if not feasible | ||
B. Conduct annual physical inventory counts and implement compensating controls if segregating the duties relating to inventory access and access to inventory records is not cost effective. | ||
C. Not expanding to Ft. Lauderdale | ||
D. Segregate the duties over the handling of inventory at all costs |
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