Annual asset verification requires how many people and within what timeframe?

• A. Two people; within 60 days
• B. Four people; within 30 days
• C. One person; within 90 days
• D. Three people; within 45 days

Answer: (D)

Asset verification relies on solid internal controls to ensure you truly know what property you have, who has it, and that records match reality. Using three people for the annual check provides proper separation of duties and independent verification: one person can conduct the physical count, another can compare it to the records, and a third eyes the reconciliation to confirm accuracy and catch discrepancies that others might miss. This trio helps prevent errors and reduces the opportunity for fraud.

The 45-day window keeps the process timely and consistent with routine operations, so inventories stay current and issues can be addressed before they become outdated or forgotten. Too few people can weaken oversight, while too many people adds unnecessary complexity; the 45-day limit strikes a practical balance.

Other options either reduce the level of independent verification or impose a timeframe that’s too tight or too loose for effective verification.