Final answer:
Periodically, management should verify that amounts related to the company's physical assets agree with the accounting records. This process is known as asset verification and is an important part of internal control within a business.
Step-by-step explanation:
Periodically, management should verify that amounts related to the company's physical assets agree with the accounting records. This process is known as asset verification and is an important part of internal control within a business.
Asset verification involves comparing the physical assets, such as buildings, equipment, and inventory, with the documentation in the accounting records. This helps ensure that the company's records accurately reflect its actual assets and can help detect any discrepancies or potential fraud.