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ABC Stores is a general dealer with branches throughout South Africa. Their head office is in...

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Accounting

ABC Stores is a general dealer with branches throughout SouthAfrica. Their head office is in Johannesburg. Once a month thebranches receive inventory from head office. The branches are onlypermitted to buy inventory for cash. One of the aspects of controlactivities is proper control over the storage of inventory. Toverify that proper control over the storage of inventory is beingcarried out, the auditor must make certain that adequate physicalsecurity measures and access controls are in place for all theassets of the enterprise.

Required: Describe the internal controls that would ensure thatproper control over the storage of inventory and assets isexercised at all the branches of ABC Stores.

Answer & Explanation Solved by verified expert
4.2 Ratings (443 Votes)
Key internal controls for your inventory are 1 Lock the warehouse The most important inventory control is simply locking down the warehouse Only autorized person should be allowed to access the warehouse 2 Organize the inventory It may not seem like a control to simply organize the inventory in the warehouse but if you cannot find it you cannot control it Thus a    See Answer
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Transcribed Image Text

ABC Stores is a general dealer with branches throughout SouthAfrica. Their head office is in Johannesburg. Once a month thebranches receive inventory from head office. The branches are onlypermitted to buy inventory for cash. One of the aspects of controlactivities is proper control over the storage of inventory. Toverify that proper control over the storage of inventory is beingcarried out, the auditor must make certain that adequate physicalsecurity measures and access controls are in place for all theassets of the enterprise.Required: Describe the internal controls that would ensure thatproper control over the storage of inventory and assets isexercised at all the branches of ABC Stores.

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