An organization allows the same individuals to physical access inventory and purchase new assets when...

For an organization that allows the same individuals to access physical inventory and purchase new assets, conducting a periodic inventory count and reconciling inventory movements is the best way to manage the risk of fraud. This approach ensures that inventory records are accurate and allows discrepancies to be identified and investigated promptly, thereby providing a check against fraudulent activities or errors. References: Best practices in internal control procedures for inventory management, as recommended by the Institute of Internal Auditors (IIA).