Management safeguards assets by
A)having the internal auditors conduct periodic counts of physical assets.
B)controlling access and by comparing physical items to records.
C)requiring the external auditors to do surprise audits.
D)having management sign a management representation letter.

Question

Quizplus · Accepted Answer

Controlling access to assets and comparing physical items to records is an effective way of safeguarding assets. This ensures that only authorized individuals have access to assets and that any discrepancies or missing items are identified and investigated. Conducting periodic counts and surprise audits may also be helpful, but they alone do not provide sufficient safeguards. Management representation letters are not directly related to safeguarding assets.

Management Safeguards Assets by