Which of the following policies is an internal control weakness related to the acquisition of factory equipment?
A)Acquisitions are made through and approved by the department in need of the equipment.
B)Advance executive approvals are required for equipment acquisitions.
C)Variances between authorized equipment expenditures and actual costs are to be immediately reported to management.
D)Depreciation policies are reviewed only once a year.

Question

Quizplus · Accepted Answer

Requiring acquisitions to be made through and approved by the department in need of the equipment can lead to a lack of independent oversight, increasing the risk of unnecessary or fraudulent purchases.

Which of the Following Policies Is an Internal Control Weakness