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NEW QUESTION: 1
An internal auditor was assigned to conduct an inventory control and stock room area engagement. During the audit, the auditor observed that there were some items that have a shelf life expiration date requirement based on a certificate of conformance received with the product. The certificates of conformance are kept on file in the inventory area office and the expirationdate is verified at the time the item is taken from stock. The auditor reviewed the items in the stock room and also on the production floor for the expiration dates to see if there was any expired product. All items with a shelf life requirement were found to be within the expiration date requirement. Which of the following recommendations would be appropriate?
A. Permit production staff the access to files where the certificates of conformity are kept, so they can choose the items with the closest expiration date.
B. Determine the cost of inventory for the items that have a shelf life and apply a new policy regarding inventory levels to be maintained (i.e., minimums, maximums, reorder points etc.).
C. Add to the product label a "use by date" line, enter the expiration at the time of receipt, and perform periodic inventory checks.
D. Take no action, because all the items were within the expiration date requirement, and no corrective action is needed.
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