19 Apr Prior to beginning work on this discussion forum, read Chapters 12 and 13 in the course textbook. Plant and equipment are not as inherently risky
Plant and Equipment [WLOs: 3, 4] [CLOs: 1, 2, 3, 4]
Prior to beginning work on this discussion forum, read Chapters 12 and 13 in the course textbook.
Plant and equipment are not as inherently risky as are other assets, such as inventories and accounts receivable. However, a company should still endeavor to maintain effective internal control over plant and equipment.
Address the following in your discussion post:
- Describe the principal purpose of internal controls relating to plant and equipment.
- List and describe four major controls applicable to plant and equipment.
- Describe two ways that the auditors obtain evidence that there are no significant amounts of unrecorded retirements of property (land).
- Describe three ways that the auditors obtain evidence that there are no significant amounts of unrecorded retirements of equipment.
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