Question

Which of the following questions would an auditor least likely include on an internal control questionnaire concerning the initiation and execution of equipment transactions?

A. Are requests for purchases of equipment reviewed for consideration of soliciting competitive bids?
B. Are requests for major repairs approved at a higher level than the department initiating the request?
C. Are procedures in place to monitor and properly restrict access to equipment?
D. Are dispositions authorized at a level above the department initiating the disposition?

Answer 1

An auditor would least likely ask about the procedures to monitor and restrict access to equipment in an internal control questionnaire concerning equipment transactions, as this relates more to physical safeguarding than to the transaction processes of initiation and execution.

Step-by-step explanation:

The question relates to the assessment of internal controls within a company, specifically regarding the initiation and execution of equipment transactions. An auditor uses an internal control questionnaire to evaluate whether a company has effective controls in place to safeguard its assets and ensure the accuracy of its financial records. In this context, the auditor would include questions that relate directly to the control activities surrounding the authorization and recording of equipment transactions.

Option C, "Are procedures in place to monitor and properly restrict access to equipment?" would be the least likely question an auditor would include on an internal control questionnaire concerning the initiation and execution of equipment transactions. This is because while monitoring and restricting access to equipment is related to internal control, it is more pertinent to the ongoing use and physical safeguarding of the equipment rather than the transaction process of initiating and executing purchases, repairs, or dispositions of equipment.