Explain why separation of duties is often described as the cornerstone of internal control forsafeguarding assets. Describe what can happen if the same person has custody of an asset andalso accounts for the asset.

Q: Explain in your own words the key objective of IAS36 – Impairment of assets.

A: An impaired asset is one with a market worth less than the value shown on the balance sheet. When an…

Q: Required: (a) Identify the internal controls over the fixed assets at HMD, based on the following…

A: a) The internal controls over the fixed assets at HMD. i) Authorization - Monthly review is done by…

Q: What types of physical controls are in place to protect company assets (assets include inventory,…

A: Physical control of assets means to physically control the management of assets of the business.

Q: Which of the following statements is true? I. Loss from theft is classified a a nonreciprocal…

A: Introductions:- The following statements are true as per provisions as follows under:-  Loss from…

Q: Explain how prenumbered documents help to provide indirect access control over assets.

A: Definition: Assets: These are the resources owned and controlled by business and used to produce…

Q: Question 5 What is the purpose of tests of control? Select an answer and submit. For keyboard…

A: Auditing is the investigation, inspection, or examination of the financial statements of an…

Q: 3. What determines the timing of revenue recognition with respect to licenses of symbolic…

A: Financial Accounting Standards Board (FASB): FASB is an independent 7 member board, of accounting…

Q: Identify potential fraud schemes related to long-lived assets.

A: The financial statements are sometimes misstated using some techniques. Such misstatement of…

Q: With respect to custody of assets - how should duties be segregated?

A: Segregation of duties means separating the accounting functions of authorisation, custody and…

Q: Define misappropriation of assets and give two examples of misappropriation of assets.

A: Asset: It represents the resources that are owned by the business.

Q: This transfer of financial asset does not result to derecognition. A. The transferred asset has…

A: Assets: Assets are resources (property) presented in the balance sheet because for it an…

Q: Which of the following assets require the strongest of internal controls? O credit cards O computer…

A: Internal controls are policies and procedures implemented by an organization to attain operational…

Q: 1. Identify potential fraud schemes related to long-lived assets.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Segregation of duties is one of the most important control activities to minimize incompatible…

A: Segregation of duty is a control mechanism that is implemented and used in order to reduce the risk…

Q: Discuss any separation of duties necessary to control against unauthorized entries to the general…

A: General Ledger:  The financial information required for the preparation of financial reports of…

Q: Identify each of the following statements as either true or false. Separation of duties eliminates…

A: Given statement is: Separation of duties eliminates the possibility of collusion to steal an asset…

Q: Which control activity is the entity implementing when credit and debt memorandums are prenumbered…

A: Control activities helps in assuring that necessary actions are taken to address risks to the…

Q: Indicate whether the statement is true or false. Internal control procedures should be designed to…

A: In accounting and auditing perspective, Internal control means fulfilling organisational objectives…

Q: Explain the appropriate treatment required when an error in accounting for property, plant, and…

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: Indicate which statements are true and which are false. Separation of recordkeeping for assets from…

A: One of internal control policy to safeguard assets is segregation of duties which is separation of…

Q: What functions should be separated to segregaterecord keeping from asset custody?

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: One of the purposes of internal control is to protect: Select one: a. assets. b. all statement of…

A:

Q: Revenue should be recognized at a single point in time when control of a good or service is…

A: Given statement is: Revenue should be recognized at a single point in time when control of a good or…

Q: estion 24 Physically locking up assets and electronically securing other assets and information is…

A: Physically locking up assets and electronically securing access to other assets and information is…

Q: Property. Plant and Equipment (PPE) are the assets that represent a material portion of the total…

A: Property. Plant and Equipment (PPE) characteristics include: Have  physical substance Acquired for…

Q: do deficiencies in internal control not always lead to material misstatement when recording…

A: internal controls rules and procedures that are implemented in order to ensure the integrity and…

Q: The separation of operational and recordkeeping responsibilities is intended to avoid various forms…

A: The Answer :

Q: Why should the person who keeps the records of an asset not be the person responsible for its…

A:

Q: Determine possible fraud schemes involving long-lived assets

A: Using specific strategies, financial statements are sometimes misstated. Financial statement fraud…

Q: Answer the following questions. a. Which department is responsible for initiating the purchase of…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Indicate which of the following claims is true and which is untrue. Separating asset recordkeeping…

A: It tells about weather the given statement is true or false.

Q: Segregation of duties is one of the most important control activities to minimize incompatible…

A: Introduction :- Segregation of Duties (SOD) is a fundamental component of a company's long-term risk…

Q: Decide for yourself which of the following statements is correct and which is incorrect. The…

A: Whether or whether a statement is true or untrue is determined by this information.

Q: Why is it crucial to the integrity of the financial statements that the fixed asset department be…

A: Fixed Asset System:   The asset used by company for more than one year is known as fixed asset.…

Q: why is there a need to re evaluate impairment of assets due to trigger events?

A: The impairment refers to the decrease in the value of assets of the company. This reduction is…

Q: Which department performs the formal record- keeping function for fixed assets?

A: Definition: Fixed Assets: It refers to the long-term assets having a useful life of more than a year…

Q: With regard to segregation of duties, rule two is that asset custody and record keeping should be…

A: Solution Revenue cycle is a recurring set of business activities and related information processing…

Q: How is independent verification carried out in a manual revenue system?

A: SOLUTION- Independent verification occurs in several departments as part of the sales order…

Q: What items could indicate a significant risk of fraud in the acquisition and expenditure cycle…

A:

Q: Describe the Costs of Defending Intangible Rights.

A: Introduction Intangible assets are the assets that cannot be seen physically, but its' presence in…

Q: One of the purposes of internal control is to protect: Select one: a. assets. b. all statement of…

A: Internal control has many purposes while main purpose is to help the organisation to safeguard…

Q: Which control activity is the entity implementing when all purchase orders above S5,000 should be…

A: Where a certain limitation is built upon the activities of the entity, it cannot be said that the…

Q: For each of the following errors in property, plant and equipment accounts, indicate a specific…

A: Answer: The internal control is the control that is set up in business so that there is no any error…