ICAEW ARF · Chapter 6 · Question 4 of 11
Which of the following is a physical control over inventory?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Inventory is kept in a locked store with access restricted to authorised staff
Explanation
Physical controls safeguard assets directly, for example locks, secure stores and restricted access. Updating records, reviewing slow-moving items and numbering count sheets are controls over recording, valuation and the count process rather than physical protection of the inventory.
More Controls over payroll, inventory and cash MCQs
- Q6A client uses a perpetual inventory system with continuous counting instead of a full year-end count. Which of the following would be…
- Q7Which of the following controls mainly addresses the valuation of inventory, rather than its existence or completeness?
- Q8What is the main purpose of a company preparing a monthly bank reconciliation that is reviewed by someone independent of the cash book?
- Q9Which control over cash received in the post is most effective?
- Q10Which of the following describes an imprest system for petty cash?