Determining Useful Life,salvage Value and Required Provisions for Future Site

question 28

Multiple Choice

Determining useful life,salvage value and required provisions for future site restoration costs,all render valuation a high inherent risk assertion for the audit of PPE.What are the main reasons?

• A)Annual depreciation expense is always a highly material amount.
• B)There is a lack of independent evidence to support the assertion.
• C)The high degree of subjectivity and potential for management bias.
• D)Auditor reliance on an external expert is usually required.

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Definitions:

Team Dysfunction

Refers to the breakdown in the effective functioning of a team, leading to conflicts, lack of coordination, and reduced performance.

Accountability for Results

The obligation to report, explain, or justify outcomes, ensuring responsibility for achieving specific objectives or goals.

Team Dysfunction

Problems within a team that hinder its effectiveness, such as lack of trust, fear of conflict, or absence of accountability.

Avoidance of Accountability

This refers to situations where individuals or organizations evade taking responsibility for their actions or decisions.