登录之后可查看解析

Weakness
Recommendation
1.
An authorization document which describes the item to be acquired, indicates the benefits to be derived, and estimates its cost is not prepared and reviewed with management.
To obtain approval for the purchase of machinery and equipment, an appropriations request should be prepared, describing the item, indicating why it is needed, and estimating its expected costs and benefits. The document also could include the item’s accounting classification, expected useful life, depreciation method and rate, and name the approving company executives.
2.
There is no control over authorized acquisitions. The purchase requisitions and purchase orders for fixed assets are interspersed with other requisitions and purchase orders and handled through normal purchasing procedures.
Authorized acquisitions should be processed using special procedures and purchase orders. These purchase orders should be subjected to numerical control. Copies of purchase orders should be distributed to all appropriate departments so that the acquisition can be monitored.
3.
Plant engineering does not appear to be inspecting machinery and equipment upon receipt.
Purchases of machinery and equipment should be subject to normal receiving inspection routines. In the case of machinery and equipment, plant engineering is usually responsible for reviewing the receipt to make certain the correct item was delivered and that it was not damaged in transit. All new machinery and equipment would be assigned a control number and tagged at the time of receipt.
4.
The lapsing schedules are not reconciled periodically to general ledger control accounts to verify agreement.
At least once each year, machinery and equipment lapsing schedules, which provide information on asset cost and accumulated depreciation, should be reconciled to general ledger control accounts. Furthermore, an actual physical inventory of existing fixed assets should be taken periodically and reconciled to the lapsing schedules and general ledger control account to assure accuracy.
5.
Machinery and equipment accounting policies, including depreciation, have not been updated to make certain that the most desirable methods are being used.
Machinery and equipment accounting procedures, including depreciation, must be updated periodically to reflect actual experience, and changes in accounting pronouncements and income tax legislation.