Assume That the Audit Team Notes the Client Has Made

question 113

Multiple Choice

Assume that the audit team notes the client has made a significant change in its product line which requires that new equipment be purchased.Which of the following would be of greatest concern to the auditor?

• A)Inappropriate book value of new equipment.
• B)Impaired value of new equipment.
• C)Impaired value of old equipment.
• D)Inappropriate depreciation calculation for new equipment.

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Definitions:

Behaviors

The way a person or group behaves or responds when faced with outside or inside forces.

Socialization

The process by which individuals learn and internalize the values, beliefs, and norms of their society, becoming functioning members of that society.

Human Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.

Life Course

The sequence of significant events, experiences, and transitions in an individual's life from birth to death.