A Weakness in Internal Control Over Recording Retirements of Equipment

question 66

Multiple Choice

A weakness in internal control over recording retirements of equipment may cause an auditor to

• A)inspect certain items of equipment in the plant and trace those items to the accounting records.
• B)review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment during the year.
• C)trace additions to the "other assets" account to search for equipment that is still on hand but no longer being used.
• D)select certain items of equipment from the accounting records and locate them in the plant.

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Definitions:

Proportion

A portion, fraction, or quantity that is seen in contrast to the entire entity.

Equilibrium

A condition or state where all acting influences are balanced, particularly in a market when supply equals demand.

Penalty Kick

A penalty kick in economics might refer metaphorically to an opportunity to score or gain significantly with little opposition, though it's primarily a sports term.

Probability of Success

A quantitative measure expressing the likelihood of achieving a specified outcome or reaching a goal.