The table below shows the financial process with corresponding significant account and relevant assertions. Each financial process shows what could gowrong (WCGW). Identify the relevant control to address each WCGW. Answers should be in not less than three sentences.Significant account andRelevant control toFinancial ProcessWhat Could Go Wrongrelevant assertion(s)address WCGWPurchase order is inappropriate because:the purchase order does not match a valid requisition;PurchasesTrade accounts payable (EA)purchase is at incorrect price; or an inappropriate orauthorized vendor is selected.Plant, equipment and leasehold Errors are made in the capitalization of fixed assets because:Property, plant andimprovement, net (EAO)inappropriate items are capitalized; items are capitalized atequipmentLand and Building, net (EAO)an inappropriate amount; or additions are not recorded.Answer with text and/or attachments:

WCGW is an acronym and stands for what could go wrong, it is the outcome in the negative sense in…

Answered: . Identify the relevant control to…

Business

Accounting

. Identify the relevant control to address each WCGW. Answers should be in not less than three sentences.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The table below shows the financial process with corresponding significant account and relevant assertions. Each financial process shows what could go
wrong (WCGW). Identify the relevant control to address each WCGW. Answers should be in not less than three sentences.
Significant account and
Relevant control to
Financial Process
What Could Go Wrong
relevant assertion(s)
address WCGW
Purchase order is inappropriate because:
the purchase order does not match a valid requisition;
Purchases
Trade accounts payable (EA)
purchase is at incorrect price; or an inappropriate or
authorized vendor is selected.
Plant, equipment and leasehold Errors are made in the capitalization of fixed assets because:
Property, plant and
improvement, net (EAO)
inappropriate items are capitalized; items are capitalized at
equipment
Land and Building, net (EAO)
an inappropriate amount; or additions are not recorded.
Answer with text and/or attachments:

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