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:

Stepping Movements

Reflexive motions observed in infants, resembling walking, when the soles of their feet touch a flat surface.

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Crawling

A form of locomotion achieved by moving on hands and knees, an essential developmental milestone in infants.

Danger

The possibility of harm or injury; the potential for a situation, action, or event to cause physical, emotional, or environmental damage or risk.