A test of controls to determine proper authorization for the addition of a major piece of equipment would include all of the following except
A)examination of purchase agreements.
B)review of minutes of the board of directors' meetings.
C)review of approvals by a capital budgeting committee.
D)examination of the identification tags attached to equipment.

Question

Quizplus · Accepted Answer

Examination of identification tags attached to equipment is not relevant to determining the proper authorization for adding a major piece of equipment. The other options all relate to the review and approval process for the purchase and addition of the equipment.

A Test of Controls to Determine Proper Authorization for the Addition