What internal control or procedure(s) would provide protection against the following threats? A production order was initiated for a product that was already overstocked in the company’s warehouse. A production employee stole items of work-in-process inventory A production employee entered a materials requisition form into the system in order to steal $300 worth of parts from the raw materials storeroom A parts storeroom clerk issued parts in quantities 10% lower than those indicated on several materials requisitions and stole the excess quantities. A production manager stole several expensive machines and covered up the loss by submitting a form to the accounting department indicating that the missing machines were obsolete and should be written off as worthless.
What internal control or procedure(s) would provide protection against the following threats? A production order was initiated for a product that was already overstocked in the company’s warehouse. A production employee stole items of work-in-process inventory A production employee entered a materials requisition form into the system in order to steal $300 worth of parts from the raw materials storeroom A parts storeroom clerk issued parts in quantities 10% lower than those indicated on several materials requisitions and stole the excess quantities. A production manager stole several expensive machines and covered up the loss by submitting a form to the accounting department indicating that the missing machines were obsolete and should be written off as worthless.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What internal control or procedure(s) would provide protection against the following threats?
- A production order was initiated for a product that was already overstocked in the company’s warehouse.
- A production employee stole items of work-in-process inventory
- A production employee entered a materials requisition form into the system in order to steal $300 worth of parts from the raw materials storeroom
- A parts storeroom clerk issued parts in quantities 10% lower than those indicated on several materials requisitions and stole the excess quantities.
- A production manager stole several expensive machines and covered up the loss by submitting a form to the accounting department indicating that the missing machines were obsolete and should be written off as worthless.
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