Plant and Equipment Are Not as Inherently Risky as Are

question 8

Essay

Plant and equipment are not as inherently risky as are other assets,such as inventories and accounts receivable.However,a company should still endeavor to maintain effective internal control over plant and equipment.
a.Describe the principal purpose of internal controls relating to plant and equipment.
b.List and describe four major controls applicable to plant and equipment.

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Definitions:

Single-Factor

Pertaining to studies, experiments, or theories that are concerned with only one variable or aspect.

Multi-Factor

Pertains to situations, conditions, or phenomena influenced by multiple factors or variables, often used in contexts analyzing complex traits or outcomes.

Linear

Describes something arranged in or extending along a straight or nearly straight line.

Circular

Shaped like or resembling a circle, indicating something round in form or movement that typically has no beginning or end point.