Which of the Following Controls Related to Management's Asset Impairment

question 60

Multiple Choice

Which of the following controls related to management's asset impairment judgments does the auditor need to understand?

• A)A systematic process to identify assets that are not currently in use.
• B)Projections of future cash flows that is based on management's strategic plans and economic conditions.
• C)Systematic development of current market values of similar assets prepared by the client.
• D)All of the above.

---

Definitions:

Ellis's ABC

A cognitive-behavioral therapy model developed by Albert Ellis, focusing on the relationship between beliefs (B), consequences (C), and activating events (A).

Activating Events

Situations or experiences that trigger a psychological response, often discussed in cognitive-behavioral therapy to address emotional reactions.

Unresolved Conflicts

Psychological term referring to internal or external disputes that an individual fails to find a resolution for, often leading to stress or psychological discomfort.

Rational-Emotive

A psychotherapeutic approach developed by Albert Ellis, focusing on resolving emotional and behavioral problems by changing irrational beliefs into more rational ones.