Key Segregation of Duties is Inventory Management

Question 1

Preparation of production schedules

Answer 1

Inventory Management

Question 2

Issuance of materials requisitions that accompany goods to the manufacturing department

Answer 2

Raw Materials Storage

Question 3

Updating of cost records with materials, labor, and overhead usage

Answer 3

Cost Accounting

Question 4

Updating of inventory records

Answer 4

Cost Accounting

Question 5

Release of goods to the shipping department

Answer 5

Finished goods store

Question 6

Approval and issuance of purchase requisitions

Answer 6

Inventory Management

Question 7

Key Segregation of Duties

Answer 7

1. The inventory management functions should be segregated from the cost-accounting function.
2. The inventory stores function should be segregated from the cost-accounting function.
3. The cost-accounting function should be segregated from the general ledger function.
4. The responsibility for supervising physical inventory should be separated from the inventory management and inventory stores functions.