The Frist Corporation has the following internal controls related to inventory:

• 1.Only authorized inventory warehousing personnel are allowed in inventory storage areas.
• 2.All inventory products are stored in warehousing areas that are segregated from other storage areas used to house equipment and supplies.
• 3.All inventory held on consignment at Frist Corporation is stored in a separate area of the warehouse.
• 4.The inventory purchasing system only allows purchases from pre-approved vendors.
• 5.The perpetual inventory system tracks the average number of days each inventory product number has been in the warehouse.
• 6.Microchips are embedded in each product and when inventory items are removed from the warehouse to shipping, radio-frequencies signal a deduction of inventory to the perpetual inventory system.
• 7.Onaweeklybasis,inventoryaccountingpersonneltakesamplesofinventoryproductsselectedfromtheperpetualinventorysystemandverifythattheinventoryison-handinthewarehouseandthatthequantitiesinthelistingarecorrect.
• a.Identify the related transaction-related audit objective(s) affected by the control.
• b.Describe risks the control is designed to mitigate.
• c.Design a test of control to determine if the control is operating effectively.