Key controls for the acquisition and expenditures process that are often used by management to prevent or detect misstatements in the financial statements are
A)segregation of duties
B)separation procedures
C)documented transaction entries
D)independent reconciliations
E)logical controls that limit access to assets
F)both A and D
G)both B and D

Question

Quizplus · Accepted Answer

Segregation of duties and independent reconciliations are both key controls that can prevent or detect misstatements in the acquisition and expenditures process. These controls help ensure that multiple individuals are involved in each step of the process, reducing the risk of errors or fraud. Documented transaction entries and logical controls are also important, but not as essential as segregation of duties and independent reconciliations. Separation procedures may be a useful control in some cases, but are not as universally applicable as the other options listed.

Key Controls for the Acquisition and Expenditures Process That Are