Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Exercise 34

The objectives of internal control for an inventory management process are to provide assurance that transactions are properly authorized and recorded and that
A) Independent internal verification of activity reports is established.
B) Transfers to the finished goods department are documented by a completed production report and a quality control report.
C) Production orders are prenumbered and signed by a supervisor.
D) Custody of work in process and finished goods is properly maintained.