ACCA Applied Knowledge · Business and Technology · Internal controls
A warehouse holds high-value electronic components. Management wants to reduce the risk of theft while still allowing staff to do their jobs. Which combination is the most appropriate physical control design?
The best design is restricted swipe-card access with signed requisitions for issues and independent periodic inventory counts. This protects the assets, creates accountability for movements, and separates custody from recording and verification.
- ARestricted access by swipe card to the store, with a logged issue system requiring signed requisitions, plus periodic independent inventory countsCorrect
- BOpen access to all staff, with an annual inventory count by the storekeeper
- CA locked store whose key is held by the storekeeper who also maintains the inventory records and performs counts
- DCameras installed but no records of items issued from the store
Explanation
Restricted access, signed requisitions and independent counts combine preventive control over custody with detective checks and segregation between custody and recording. The key-holding storekeeper option fails because custody, recording and counting sit with one person. Open access and cameras without issue records leave no accountability for items removed.
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