One method of internal control is periodically comparing/reconciling inventory on hand with accounting records. How is this accomplished?

Multiple Choice

• Compare what is recorded in the accounting records with the purchase orders maintained in the accounting files.
• Physically count inventory and compare the value of the inventory with the market to ensure inventory is not devaluing.
• Physically count inventory on hand and compare it with what is recorded in the accounting records.
• Compare a physical count of inventory to purchase orders maintained in accounting files.