Which of the following procedures is most likely to prevent the improper disposition of equipment?
A) A periodic analysis of the scrap sales and the repairs and maintenance accounts.
B) The segregation of duties between those authorized to dispose of equipment and those authorized to enter the disposition transaction.
C) The use of serial numbers to identify equipment that can be sold.
D) A periodic comparison of equipment removal work orders with the authorizing documentation.

Question

Quizplus · Accepted Answer

Segregation of duties between those authorized to dispose of equipment and those authorized to enter the disposition transaction is the most effective way to prevent the improper disposition of equipment. This helps prevent any one person from having too much control over the entire process, reducing the risk of fraud or errors. While the other procedures listed may provide some level of control, they are not as effective as segregation of duties.

Which of the Following Procedures Is Most Likely to Prevent