ACCA Applied Knowledge · Business and Technology · Internal controls
Which of the following is an example of a physical control over assets?
Locking the warehouse and giving keys only to authorised storekeepers is a physical control. It restricts access to inventory and so protects the asset directly, whereas numbering invoices, bank reconciliations and journal approval are controls over records and transactions.
- ALocking the inventory warehouse and issuing keys only to authorised storekeepersCorrect
- BRequiring sales invoices to be numbered sequentially in the system
- CPreparing a monthly bank reconciliation
- DHaving journal entries approved by the financial controller
Explanation
Physical controls restrict access to and protect tangible assets, such as locked stores or safes with limited key holders. Sequential numbering, bank reconciliations and journal approval are controls over records and processing, not physical access to assets.
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