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.