You are a new hire in the Accounting department of Gellin's Gelatins, a global manufacturer of snack foods. For your first assignment, you must review the risk and controls for fixed asset acquisitions to ensure that the correct alignment of risk and controls exists, and if it doesn't, you need to create an updated version of the alignment and submit it for approval. Match each control with the risk it is intended to mitigate.
You are a new hire in the Accounting department of Gellin's Gelatins, a global manufacturer of snack foods. For your first assignment, you must review the risk and controls for fixed asset acquisitions to ensure that the correct alignment of risk and controls exists, and if it doesn't, you need to create an updated version of the alignment and submit it for approval. Match each control with the risk it is intended to mitigate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You are a new hire in the Accounting department of Gellin's Gelatins, a global manufacturer of snack foods. For your first assignment,
you must review the risk and controls for fixed asset acquisitions to ensure that the correct alignment of risk and controls exists, and if
it doesn't, you need to create an updated version of the alignment and submit it for approval. Match each control with the risk it is
intended to mitigate.
Control
Non-collusion affidavits
Periodically review physical assets
Have management review accounting transactions
Perform fixed asset reconciliations
Initially approve fixed asset purchase
Enter assets into the main fixed asset table
Tag fixed assets
Have employee review and sign a code of conduct
Have management review acquisition agreements
Ensure policies limiting fixed assets expenditures Are clearly
documented and authorized
Risk
Acquisitions not being conducted in adherence with policy
Fixed asset being expensed instead of being capitalized
Fraudulent bidding
Fraudulent bidding or approval of non-budgeted items
Improper use of the asset
Inability to properly track the asset
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