Which of the following constitutes a control weakness related to factory equipment?
A) A policy requiring all purchases of factory equipment to be made by the department in need of the equipment.
B) Checks issued in payment of purchases of equipment are not signed by the controller.
C) Factory equipment replacements are generally made when estimated useful lives, as indicated in depreciation schedules, have expired.
D) Proceeds from sales of fully depreciated equipment are credited to other income.
Correct Answer:
Verified
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