In Auditing an Asset Valued at Fair Value,which of the Following

question 88

Multiple Choice

In auditing an asset valued at fair value,which of the following potentially provides the auditor with the strongest evidence?

• A)A price for a similar asset obtained from an active market.
• B)An appraisal obtained discounting future cash flows.
• C)Management's judgment of the cost to purchase an equivalent asset.
• D)The historical cost of the asset.

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Definitions:

Neutral Ground

A term used to describe a setting or situation where no party has an advantage or dominance, often used in negotiations or conflict resolution.

Personal Integrity

The quality of being honest and having strong moral principles that one does not breach, even when alone or unwatched.

Espoused Values

The explicitly stated values and standards of an organization that are proclaimed by its leadership.

Social Injustice

Unfair practices or situations in society where individuals or groups are discriminated against or denied equal rights or opportunities.