Question

Describe 2 things organizations must consider when improving control of assets

Answer 1

For improving control of assets, organizations must have a proper internal control system over the assets. Organizations must follow policies and procedures for safeguard and control of assets.

Seperate controls are required for various types of assets. Asset may be tangible or intangible, short term or long term, fixed or current.

Two things organizations must consider when improving control of assets -

1. Segregation of duties - Single person should not be charged with all duties related to assets. For example, person managing accounts related to stock should not have access to physical inventory.

2. Keeping record of / track of assets - Timely review and inspection of assets leads to timely accounting for their existence, maintenance, depriciation, theft and other relevant information.