Key Segregation of Duties is Inventory Management Flashcards Preview

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Flashcards in Key Segregation of Duties is Inventory Management Deck (7)
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1

Preparation of production schedules

Inventory Management

2

Issuance of materials requisitions that accompany goods to the manufacturing department

Raw Materials Storage

3

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

Cost Accounting

4

Updating of inventory records

Cost Accounting

5

Release of goods to the shipping department

Finished goods store

6

Approval and issuance of purchase requisitions

Inventory Management

7

Key Segregation of Duties

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.