Key controls for the acquisition and expenditures process that are often used by management to prevent or detect misstatements in the financial statements are
A)limitation of duties
B)authorization procedures
C)documented transaction entries
D)department reconciliations
E)physical controls that limit access to assets
F)both A and D
G)both B and E

Question

Quizplus · Accepted Answer

Authorization procedures and physical controls that limit access to assets are key controls in the acquisition and expenditures process to prevent or detect misstatements. Authorization ensures that transactions are approved by appropriate personnel, while physical controls protect against unauthorized access to assets.

Key Controls for the Acquisition and Expenditures Process That Are