A Weakness in Internal Control Over Recording Retirements of Equipment

question 2

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:

Contingency Table

A tabular display of data that shows the frequency distribution of variables to study the relationship between them.

Blood Type

A classification of human blood based on the presence or absence of antibodies and inherited antigenic substances on the surface of red blood cells.

Probability Assignment

An academic or educational task involving the calculation or analysis of probabilities concerning certain events or scenarios.

Legitimate

Something that is lawful, justified, and recognized as valid or conforming to established rules and standards.