All of the Following Are Significant Deficiencies Except

question 62

Multiple Choice

All of the following are significant deficiencies except:

• A)inadequate design of internal control over a significant account or process.
• B)management override of controls.
• C)inadequate provisions for safeguarding assets.
• D)inventory is highly subject to obsolescence.

---

Definitions:

Impairment

Reduction in the recoverable value of an asset below its carrying amount.

Recoverable Amount

The higher value between an asset's fair market value less costs to sell and its value in use.

AASB 136

The Australian Accounting Standards Board standard that deals with impairment of assets, requiring assets to be carried at no more than their recoverable amount.

Value In Use

The present value of the future cash flows expected to be derived from an asset, used in impairment testing.