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.

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Definitions:

Long-term Note

A loan or credit with a repayment period that extends beyond one year, often used for significant business investments or purchases.

Financing Activities

Transactions involving the flow of cash between a company and its owners or creditors, relating to equity and debt financing.

Long-term Investment

Investments in assets or securities intended to be held for a period longer than one year for capital gains, dividends, or interest earnings.

Accounts Payable

Liabilities of a business representing its obligations to pay off a short-term debt to its creditors or suppliers.