The Internal Control Process of Requiring the Check of the Fixed

question 23

Multiple Choice

The internal control process of requiring the check of the fixed asset subsidiary ledger and depreciation schedule for mathematical accuracy and agreement with authorized documentation, will help to minimize the risk of:

• A)Incorrect amounts
• B)Lost or stolen assets
• C)Duplicate transactions
• D)Omitted transactions

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Definitions:

Incorporation by Reference

A method where a document includes by reference all or portions of another document, making the referenced material part of the new document.

Extrinsic Documents

Documents that are not part of the original contract but are referenced and incorporated by implication or necessity.

Specification of Heirs

is the process or legal document in which a person designates who will inherit their assets after death.

Nuncupative Will

An orally delivered will, often made in anticipation of imminent death, and usually requiring witnesses, with legal recognition varying by jurisdiction.