You became aware of the following control procedures for Gatehouse & Company's fixed assets:

1. All scrapped assets are agreed with published price lists before being offered for sale and are never sold for amounts significantly below established prices.

2. Procedures for operating, using, moving, and controlling fixed assets are firmly established in periodically updated procedures manuals.

3. Procedures are established for identifying assets as potential scrap sale items, although actual sales must first be approved by division managers.

4. Physical custody over fixed assets is segregated from recording.

5. Fixed assets on the floor are reconciled periodically with fixed asset records, and vice versa.

Required: 

For each control procedure, indicate:

(a) a potential error or fraud that might be prevented as a result of the control procedure, and

(b) the control objective served by the control procedure. Organize your answer as follows:

Transcribed Image Text:

Control Procedure Potential Error or Fraud That Might Be Prevented or Detected Control Objective