. 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
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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:
Transcribed Image Text: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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