Physical control over of assets :

Once the purchases are done, it is necessary to secure the materials in a safe location. To ensure that the resources are accounted for, it is necessary to periodically verify the inventory and compare the results with the books.

To ensure security of assets, it is advisable to –

(i) Secure goods received in a restricted area.

(ii) Restrict inventory access to appropriate staff.

(iii) Lock goods and materials, and provide key or combination to as few people as possible.

(iv) Keep inventory records and periodically calculate beginning and ending inventory amounts.

If physical control over assets does not exists, it may result into theft of goods, inventory shortages, additional costs incurred for replacement of goods