Which of the following policies constitutes a control weakness related to the acquisition of factory equipment?
A) Acquisitions are to be made through and approved by the department in need of the equipment.
B) Advance executive approvals are required for equipment acquisitions.
C) Variances between authorized equipment expenditures and actual costs are to be immediately reported to management.
D) Depreciation policies are reviewed only once a year.
Correct Answer:
Verified
Q4: The auditor may conclude that depreciation charges
Q5: The property, plant, and equipment records function
Q6: If the auditor has detected misstatements in
Q7: An example of a prepaid account is
Q8: Assets no longer used in operations are
Q10: Reviewing capital budgets and comparing the amounts
Q11: Disposition of capital assets through sale, exchange,
Q12: Substantive analytical procedures should not be used
Q13: An auditor typically sets inherent risk for
Q14: Substantive analytical procedures are commonly used to
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