Authorization
Purchases of inventory should be authorized by the Inventory Control department, not by purchasing agents
Proper authorization of transactions (documentation) should occur so that only valid transactions get processed.
Segregation of Functions
Custody of the asset, inventory, by the Warehouse must be separate from recordkeeping for the assets by the Inventory Control.
Supervision is of highest importance in the Receiving department, where the inventory arrives and is logged in by a receiving clerk. Need to minimize:
failures to properly inspect the assets
theft of the assets