Internal controls that should be applied when a business takes a physical count of inventory should include all of the following except: Multiple Choice a) Prenumbered inventory tickets. b) A manager confirms that all inventories are ticketed only once. c) Counters confirm the validity of inventory existence, amounts, and quality. d) Second counts by a different counter. e) Counters of inventory should be those who are responsible for the inventory.

Having different people do the physical counting of inventory guarantees the integrity of the count. The staff in charge of inventory are probably aware of any variances as they conduct regular checks. Having different people count eliminates the possibility of number manipulation by the staff responsible for the stock.

Before a stock count, all operations should be halted. Items received during the stock count should be separated and not counted. There should be a document giving instructions to staff to ensure consistency.

As a measure of internal control, all stocks should be identified with a numbered tag. The supervisor should ensure proper tagging has been done. Where possible, counters will be organized in teams of two so that each item goes through two counts. Assign groups to count items which are not in their direct responsibility. Should there be a variance, a separate team should be allowed to counter check.