Having Management Periodically Determine Whether the Amount of Physical Assets

question 59

Multiple Choice

Having management periodically determine whether the amount of physical assets of the company match the accounting records is an example of which detective control?

• A)Separation of duties.
• B)Reconciliations.
• C)Performance reviews.
• D)Employee management.

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Definitions:

Overhaul

A comprehensive examination and repair of machinery or systems to ensure they operate efficiently.

Mortgage

A loan specifically used to purchase real estate, where the property itself serves as collateral until the debt is fully repaid.

Upgrade Cost

The expense associated with making improvements or enhancements to assets, such as equipment or software, to increase their value or efficiency.

Upgrade

An upgrade is a process of replacing a product with a newer version, or enhancing its features or efficiency, often to improve performance or to incorporate new technologies.