In evaluating control risk and effectiveness for fixed assets,controls should be designed for numerous purposes.Which of the following is not a usual control for fixed assets?
A)identify existing assets,inventory them,and reconcile physical inventory with the property ledger.
B)periodically reassess the appropriateness of depletion categories.
C)identify obsolete or scrapped equipment and write it down to scrap value.
D)periodically review management strategy and systematically assess the impairment of assets.
E)all of the above are usual controls for fixed assets.

Question

Quizplus · Accepted Answer

Periodically reassessing the appropriateness of depletion categories is not a usual control for fixed assets. It pertains more to natural resources or mining assets where depletion is an important accounting concept. For fixed assets such as property or machinery, the usual controls include identifying existing assets, inventorying them, reconciling physical inventory with the property ledger, identifying obsolete or scrapped equipment, writing it down to scrap value, periodically reviewing management strategy, and systematically assessing the impairment of assets.

In Evaluating Control Risk and Effectiveness for Fixed Assets,controls Should