Question 3

A) Human resource controls represent one of the principles of internal control activities. Specify three common approaches of implementing of controls of human resource.

B) Mr. Ahmad, the owner of Bundle Sdn Bhd, has adopted the perpetual inventory system instead of periodic inventory system to ensure the companys control over the inventory. In addition, he plans to perform a physical stock count every quarter until he is confidence with the reliability of the perpetual inventory system.

Required:

a) Explain the difference between perpetual inventory system and periodic inventory system.