Jawaban:

As Harris, CPA, is about to assess control risk for the assertions related to Grant Manufacturing Co.'s property and equipment, the key internal control structure policies and procedures related to Grant's property, equipment, and related transactions that Harris may consider in assessing control risk are:

1. Segregation of duties: Harris should ascertain whether Grant has segregated duties regarding its property and equipment, such that the same individual is not responsible for initiating, approving, and executing transactions related to property and equipment. For example, the person responsible for authorizing the purchase of a new equipment should be different from the person who receives it, and also from the person that records it.

2. Authorization process: Harris should verify that Grant has a reliable system for authorizing transactions related to property and equipment. For example, the company should maintain a list of authorized personnel who are allowed to approve transactions such as purchases, transfers, and disposals of equipment.

3. Physical controls: Harris should evaluate whether Grant has implemented physical controls, such as locks, keyed access, surveillance systems, and other security measures to minimize the risk of theft or misuse of its property and equipment.

4. Documentation and Record-keeping: Harris should ensure that Grant maintains complete and accurate documentation related to its property and equipment transactions, including invoices for purchases or disposals, maintenance and repair records, as well as any other relevant supporting documents. Additionally, records should be safeguarded appropriately.

5. Periodic review and reconciliation: Harris should review whether Grant periodically reconciles equipment records to ensure that everything is updated and accurate.

By evaluating these internal control policies and procedures, Harris can get a sense of Grant Manufacturing Co.'s level of control over its property and equipment. This information can then be used to assess the company's control risk and to determine the appropriate audit procedures to achieve the desired level of audit risk.