Due to a Weakness Observed in Internal Control Over Recording

question 31

Multiple Choice

Due to a weakness observed in internal control over recording retirements of equipment, the auditor may decide 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 is being used.
• D) Select certain items of equipment from the accounting records and locate them in the plant.