When auditing an acquisition the auditor is faced with the problem of determining fair market value of the net assets acquired.

Question

Quizplus · Accepted Answer

The auditor is responsible for determining the fair market value of the net assets acquired during an acquisition. This can be a challenge, as the value can be influenced by a variety of factors, including market conditions, the quality and nature of the assets, and the terms of the acquisition agreement. The auditor must use appropriate valuation methods and techniques to arrive at an accurate fair market value.

When Auditing an Acquisition the Auditor Is Faced with the Problem