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.

Question

Quizplus · Accepted Answer

Understanding controls related to management's asset impairment judgments involves knowing how assets not in use are identified, how future cash flows are projected based on strategic plans and economic conditions, and how current market values of similar assets are systematically developed by the client. These processes help ensure that asset impairments are identified and measured accurately.

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