Why Is a Good System of Internal Controls Necessary Over

Multiple Choice

Why is a good system of internal controls necessary over inventory?

A) Inventory is an asset that a company must have available to sell.
B) Inventory is large and hard for a company to manage with proper controls.
C) Inventory is one of the main targets of fraud and theft.
D) Inventory is tied to liabilities and must be managed before too much debt is incurred.