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What is the PRIMARY purpose of integrating ICOFR with an ERP system in an inventory management context?
AAllow back-dating of inventory entries when needed
BReplace the requirement for an annual external audit
CEliminate the need for physical inventory counts
DEnforce segregation of duties, access controls and approval workflows that ensure accurate inventory valuation and reduce manipulation risk
Answer & Solution
Correct answer: D. Enforce segregation of duties, access controls and approval workflows that ensure accurate inventory valuation and reduce manipulation risk
ICOFR-ERP integration enforces SoD, access controls and approval workflows; it does NOT eliminate audits or physical counts and certainly does not enable backdating.
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