Which of the following controls is not a typical control that affects multiple assertions for long-lived assets?
A)Reviewing insurance policies for adequate replacement coverage of assets.
B)Formal budgeting process with appropriate follow-up variance analysis.
C)Periodic comparison of physical assets to subsidiary records with the general ledger.
D)Periodic reconciliations of subsidiary records with the general ledger.

Question

Quizplus · Accepted Answer

Reviewing insurance policies for adequate replacement coverage of assets is not a typical control that affects multiple assertions for long-lived assets. It is a control related to the insurance coverage of assets and does not address the completeness, existence, or valuation assertions for long-lived assets. The other three controls (B, C, and D) are typical controls that affect multiple assertions for long-lived assets.

Which of the Following Controls Is Not a Typical Control