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Internal Control of Acquisition Assignment

   

Added on  2020-07-22

7 Pages1697 Words39 Views
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Internal Control of Acquisition ofTangible Non-Current Assets
Internal Control of Acquisition Assignment_1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1a) Tangible and Non-current Assets............................................................................................1b) Strength of Internal Control of acquisition and disposal of tangible non-current assets........1c) Steps for testing control of the system....................................................................................2CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
Internal Control of Acquisition Assignment_2

INTRODUCTIONAssets are everything which have some monetary value. It can be classified into two partson the basis of measurement such as tangible and intangible. Tangible assets are those which canbe touched or which are physically present at the workplace. Land, equipment, machinery,furniture and building are some examples of tangible non-current assets which have monetaryvalue for more than one year (Su and Wells, 2015). Hence, all the items which have somemonetary value plays great role in analysing actual financial position of a company. It isliquefied in nature. This report analyses internal control of acquisition and disposal of tangiblenon-current assets which are done by the manager of B Ltd. At last, various steps are to bepresented by which acquisition and disposal of non-current assets can be done easily. Variousprocess related to verification and authorization are also presented in this report by which thecompany can analyse its assets requirement in its operational activity.a) Tangible Non-Current AssetsTangible non-current assets include those which have some monetary value andphysically appearance at the workplace. These kinds of assets are validated for more than oneyear and liquified in nature (Giriūnas and Mackevičius, 2014).b) Strengths of Internal Control of acquisition and disposal of tangible non-current assetsTo make internal control over acquisition and disposal of tangible non-current assetsvarious members of departments plays an essential role in B Ltd. This case described thatrequisition purchase is done under the supervision of manager and it must be checked by thepurchasing officers (Internal Control System, 2017). Financial accountant also set their budgetsand make a compete records while purchasing a new asset. Hence, all the departmental activitiesare done by manager in an impressive manner. Hence, acquisition and disposal of tangible non-current assets are internally controlled which have several strengths, that are as follows:It provides guidance to the management to ensure that purchased item is fully treated asnon-current assets in the organisation.Controlling can be done easily in the case of revaluation of non-current assets in B Ltd.By making internal control, all the documents are prepared by the managementareassessed and compare periodically.1
Internal Control of Acquisition Assignment_3

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