Question

In: Accounting

The master inventory file, contained on a removable magnetic disk, was destroyed by a small fire...

The master inventory file, contained on a removable magnetic disk, was destroyed by a small fire next to the area where it was stored. The company had to take a special complete inventory in order to reestablish the file. The best control procedure would be:

a. fire insurance

b. data processing insurance

c. a copy of the disk

d.Remote storage of a copy of the disk and the transactions since the disk was copied

Solutions

Expert Solution

d.Remote storage of a copy of the disk and the transactions since the disk was copied

The company could have stored a copy of data and keep it in another place so that they can use it in case of emergency. the insurance cannot replace the data which was lost.


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