To improve accountability for fixed asset retirements, management most likely would implement a system of internal control that includes:

Question

Quizplus · Accepted Answer

A system of internal control that includes a level of authorization above the department initiating the retirement would ensure that retirements are properly reviewed and authorized before they are executed, improving accountability for fixed asset retirements. Continuous analysis of the repairs and maintenance account (A) and periodic inspection of insurance policies (D) would not necessarily address accountability for fixed asset retirements, and periodic inquiry of plant executives by internal auditors as to whether any plant assets have been retired (B) may not be effective in capturing all retirements and ensuring proper authorization.

To Improve Accountability for Fixed Asset Retirements, Management Most Likely