Controls over fixed asset balances often include _______.

Question

Quizplus · Accepted Answer

Controls over fixed asset balances typically involve physical controls over the assets themselves (e.g. keycard access to certain areas, security cameras), as well as the maintenance of a fixed asset inventory that is periodically checked against the existing assets to ensure accuracy and completeness. Option A is incorrect because fixed assets are assets, not liabilities. Option B is incorrect because physical controls over current assets would not be relevant to controls over fixed assets. Option D is incorrect because assets are typically recorded at historical cost, not fair value (exceptions may apply for certain types of assets).

Controls Over Fixed Asset Balances Often Include _______