Identify the option that represents weakness in internal control over property, plant and equipment

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 18.1MCQ

To determine

Identify the option that represents weakness in internal control over property, plant and equipment

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

A key internal control over the acquisition cycle is to ensure that the company requires recording transactions at correct quantities and amounts. This satisfies the transaction-related audit objective of: timing. completeness. accuracy. occurrence.

CAATs Application—PP&E. You are supervising the audit fieldwork of Sparta Springs Company and need certain information from Sparta’s equipment records, which are maintained on a computer file. The particular information is (1) net book value of assets so that your assistant can reconcile the subsidiary ledger to the general ledger control accounts (the general ledger contains an account for each asset type at each plant location) and (2) sufficient data to enable your assistant to find and inspect selected assets. The record layout of the master file follows:Asset number.Description.Asset type.Location code.Year acquired.Cost.Accumulated depreciation, end of year (includes accumulated depreciation at the beginning of the year plus depreciation for year to date).Depreciation for the year to date.Useful life.From the data file described earlier,a. List the information needed to verify correspondence of the subsidiary detail records with the general ledger accounts. Does this work…

Select the appropriate control activities for each of the following definitions. Definitions Control Activities a. The company should maintain security over assets and accounting records. Management should periodically determine whether the amounts of physical b. assets of the company match the accounting records. The company should provide employees with appropriate guidance to ensure C. they have the knowledge necessary to carry out their job duties. The actual performance of individuals or processes should be checked against d. their expected performance. Authorizing transactions, recording transactions, and maintaining control of the е. related assets should be separated among employees. To prevent improper use of the company's resources, only certain employees are allowed to carry out certain business activities.