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.

Question

Quizplus · Accepted Answer

By assigning a control identification number to fixed assets and permanently affixing it to the asset, it allows for periodic inventory to verify the existence and location of the asset, demonstrating the client's control. The other options do not necessarily evidence the client's control over the existence of machinery and equipment.

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