ACCA AA · Chapter 8 · Question 8 of 12
Which of the following controls would be most effective in reducing the risk of theft of high-value inventory from a warehouse?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Restricting physical access to the warehouse and reconciling perpetual inventory records to regular counts
Explanation
Restricting access prevents theft, and regular reconciliations of physical counts to records detect losses promptly so they can be investigated. The valuation method and ledger posting do not safeguard the goods, and an annual margin review is too high-level and too late to be an effective control.
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