When Testing Fixed Assets for the Reasonableness of the Client's

question 59

Multiple Choice

When testing fixed assets for the reasonableness of the client's estimated useful lives,the audit team should do which of the following?

• A)consult the IRS code for regulated lives.
• B)make the decision for the client upon purchase.
• C)understand the economics of the client's business.
• D)compare them with other clients in different industries.

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Definitions:

Employee Relations

An HR discipline concerned with strengthening the employer-employee relationship through measuring job satisfaction, employee engagement, and resolving workplace conflicts.

Conducting Attitude Surveys

The process of gathering and analyzing data on the perceptions, opinions, or feelings of individuals or groups towards specific subjects or issues.

Human Capital

An organization's employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight.

Economic Value

The worth of a good or service determined by the market, based on its ability to generate income or its utility to consumers.