Key control procedures for the long-term debt and owner's equity process are

Question

Quizplus · Accepted Answer

The key control procedures for the long-term debt and owner's equity process are segregation of duties and independent reconciliations. These procedures ensure that no single individual has complete control over the process and that there is a system of checks and balances in place. Segregation of duties means that different individuals are responsible for different aspects of the process, such as authorizing, recording, and reconciling transactions. Independent reconciliations involve a separate individual or department reviewing and verifying the accuracy of the transactions and account balances. This helps to detect errors or fraudulent activity. Therefore, choice G, which includes both segregation of duties and independent reconciliations, is the best answer.

Key Control Procedures for the Long-Term Debt and Owner's Equity