Question

The materials manager of a warehouse is given a new product line to manage with new inventory control procedures. Which of the following sequences of the COSO internal control monitoring-for-change continuum is affected by the new product line?
A. Both control baseline and change management
B. Control baseline but no change management
C. Change management but not control baseline
D. Neither control baseline nor change management.

Answer 1

Answer:

A. Both control baseline and change management

Explanation:

In the case when the material manager provides the new product line having the procedure to control the new inventory so the internal control that impact the new product line is the control baseline and the control management as both should be impacted because the control should be there with regard to the baseline and the managing in order to managing the risk

Hence, the option a is correct