CIM Inventory Auditing & Data Accuracy 4

Question 1

Which of the following is NOT a common cause of inventory record inaccuracy?

Accepted Answer

Employees following standard operating procedures

Answer

Following SOPs is a control that prevents errors; unrecorded shrinkage, receiving keying mistakes, and timing delays are all root causes of inaccuracy.

Question 2

A 'tag control' system during a physical inventory ensures that:

Accepted Answer

Every count tag is accounted for to prevent missed or double-counted locations

Answer

Tag control tracks the serialized count tags issued and returned so auditors can verify no locations were skipped or counted twice.

Question 3

What is the purpose of 'cutoff control' procedures during a physical inventory?

Accepted Answer

To freeze or carefully track transactions during the count so receipts and shipments don't distort count results

Answer

Cutoff control ensures that inventory movements occurring during the count period are properly segregated so the count reflects a consistent point-in-time snapshot.

Question 4

An RFID-based inventory system provides an advantage over traditional barcode scanning for audits primarily because:

Accepted Answer

RFID can read multiple tags simultaneously without line-of-sight

Answer

RFID readers can capture hundreds of tags per second without requiring direct line-of-sight, dramatically speeding up large-area inventory verification.

Question 5

When calculating inventory accuracy at the location level rather than the SKU level, which additional error type becomes visible?

Accepted Answer

Misput and bin-level allocation errors

Answer

Location-level accuracy reveals misput errors where correct quantities exist in the wrong bin — these are invisible when accuracy is only measured at the SKU total level.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Inventory Auditing & Data Accuracy 4