Property acquisitions that are misclassified as maintenance expense would most likely be detected by an internal control

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Property acquisitions that are misclassified as maintenance expense would most likely be detected by an internal control policy that provides for

a. Review and approval of the monthly depreciation entry by the plant supervisor.

b. Investigation of variances within a formal budgeting system.

c. Segregation of duties of employees in the accounts payable department.

d. Examination by the internal auditor of vendor invoices and canceled checks for property acquisitions.

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Auditing An Assertions Approach

ISBN: 9780471134213

7th Edition

Authors: G. William Glezen, Donald H. Taylor

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