Equipment acquisitions that are misclassified as maintenance expense most likely would be detected by a control that provides for
a. Segregation of duties of employees in the accounts payable department.
b. Independent verification of invoices for disbursements reported as equipment acquisitions.
c. Investigation of variances within a formal budgeting system.
d. Authorization by the board of directors of significant equipment acquisitions.
Answer: C
CPA Exam
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