4. The most appropriate method to control the frequent movement of trailers loaded with valuable metal scrap from the manufacturing plant to the company scrap yard about 10 miles away would be to

A.Perform complete physical inventory of the scrape trailers before leaving the plant and upon arrival at the scrap yard.

B.Require existing security guards to log the time of plant departure and scrap yard arrival. The elapsed time should be reviewed by a supervisor for fraud.

C.Use armed guards to escort the movement of the trailers from the plant to the scrap yard.

D.Contract with an independent hauler for the removal of scrap.

B yes. Having the security guards record the times of departure and arrival is a cost-effective control because it entails no additional expenditures. Comparing the time elapsed with the standard time allowed and investigating material variances may detect a diversion of part of the scrap.

A no. performing a complete physical inventory of the scrap at both locations would not be economically feasible.

C no. Hiring armed guards to escort the scrap trailers is unlikely to be necessary unless the scrap is extremely valuable. Logging departures and arrivals will be sufficient in most cases.

D no. using an independent haulerwould provide no additional assurance of prevention or detection of wrongdoing.