3.Management can best strengthen internal control over the custody of inventory stored in an off-site warehouse by implementing.

A . Reconciliation of transfer slips to/ from the warehouse with inventory records.

B . increases in insurance coverage.

C. regular reconciliation of physical inventories to accounting records.

D, Regular confirmation of the amount on hand with the custodian of the warehouse.

C yes. The most effective control over off-site inventory is the periodic comparison of the recorded accountability with the actual physical inventory.

A no. examination of documents is a less effective procedure than actual observation of the inventory.

B no. Increasing insurance coverage helps protect the business against losses but does not strengthen internal control over the custody of inventory.

D no. Confirming with the custodian the amount of inventory on hand does not verify that the inventory is actually at the warehouse.