Which would be an example of a preventitive control

Reference no: EM132823619

Problem 1: Which of the following would be an example of a preventitive control and a suitable test of this control?

a) Having a lock on a door where valuable closing stock is stored. A suitable test of the control would be to complete a stock take.

b) Running an exception report for any negative numbers of specific stock items. A test of this control would include reviewing the printed reports and the adjusting journals in the stock system which rectify any errors.

c) Not allowing negative amounts of stock to be entered into the inventory system. A test of this control would be to try to enter in a negative amount.

d) Performing a stocktake to compare the actual stock items with the amount recorded in the accounts for stock. A test of this control would include reviewing any items of stock in particular that look damaged.

Reference no: EM132823619

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