A company has noticed discrepancies in its inventory records. Which control activity principle should be applied to identify potential risks and propose solutions?

• A. Establishment of responsibility should be applied to assign one employee to manage all inventory tasks.
• B. Documentation procedures should be applied to eliminate the need for physical controls.
• C. Independent internal verification should be applied to reduce employee workload.
• D. Separation of duties should be applied to ensure different employees handle ordering, receiving, and recording inventory.

Answer: (D)