Question
Roger Lemmon is the chief financial officer (CFO) for a large aviation parts supply company. In recent months, Roger has been alarmed at the increase
Roger Lemmon is the chief financial officer (CFO) for a large aviation parts supply company. In recent months, Roger has been alarmed at the increase in inventory losses. He is not sure whether parts orders are not being properly recorded or whether employees or outside individuals are stealing parts. Roger realizes that he needs to improve the control activities related to inventory. He wants to start with the detective controls. What are the two detective controls?
Independent checks and segregation of duties Adequate documents and independent checks Segregation of duties and physical control Proper authorizations and physical control |
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