Internal controls over inventory next to cash most

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Unformatted text preview: p! Recognize loss in period the loss occurs, not when the items are sold. Internal Controls over Inventory: • Next to cash, most vulnerable asset to loss or theft. • Company needs to be able to track inventory to help prevent stock-outs, backorders, etc. • Separation of duties for accounting of inventory and handling inventory (recording and custody) • Adequate controls over inventory storage to help prevent loss or theft • Limit access to inventory to only authorized employees • Maintain perpetual inventory records • Compare inventory records to physical counts of inventory 44 The following inventory information was available for Hallmark Company on 3/31/09. Beginning In...
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