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:

Hydrologic Cycle

The continuous movement of water on, above, and below the surface of the Earth, which includes processes such as evaporation, precipitation, and infiltration.

Biogeochemical Cycles

Pathways by which chemical substances move through both biotic (biological) and abiotic (geological and atmospheric) compartments of Earth.

Surface Ocean Currents

Movements of ocean water driven by various factors, including wind patterns and the Earth's rotation, that occur at or near the surface of the ocean.

Gyre

Gyre describes a large system of circulating ocean currents, often driven by global wind patterns, significantly impacting climate and ecosystem biodiversity.