Which of the following would indicate a deficiency in internal controls in the acquisition and payment cycle?
A) Repairs and maintenance accounts are reviewed for unusual entries each quarter
B) Acquisitions are made and approved by the department that will use the equipment
C) Acquisitions of equipment greater than $1,000 are to be capitalized
D) Acquisitions of equipment less than $1,000 are to be expensed as incurred

Question

Quizplus · Accepted Answer

Allowing the department that will use the equipment to make and approve acquisitions can lead to conflicts of interest and lack of oversight, indicating a deficiency in internal controls.

Which of the Following Would Indicate a Deficiency in Internal