Which of the Following Procedures Would Evidence the Client's Control

question 19

Multiple Choice

Which of the following procedures would evidence the client's control over the existence of machinery and equipment?

• A)Useful lives are only entered into the system by the controller.
• B)Impairment testing takes place in accordance with a formal assessment of business changes and events as they relate to fixed assets.
• C)Fixed assets are assigned a control identification number and that number is permanently affixed to the asset for periodic inventory.
• D)Only the CFO can enter additions into the fixed asset module of the system.

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Definitions:

Creditor's Name

The name of the individual or entity that is owed money by a debtor for provided goods, services, or loans.

Voucher Number

A unique identifier assigned to a voucher, which is a document authorizing a payment or receipt in the accounting system.

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Separation Of Duties

is a preventive security measure in organizations to reduce the risk of fraud or error, requiring more than one person to complete key tasks.