Audit tests for goodwill and other asset impairments will require considerable judgment on the part of the auditor.

Question

Quizplus · Accepted Answer

Audit tests for goodwill and other asset impairments involve significant judgment on the part of the auditor, as it involves assessing the likelihood of impairment, selecting appropriate valuation methods, and determining the appropriate accounting treatment. The auditor must exercise professional judgment in performing these tests to ensure that financial statements fairly present the extent of impairment, if any.

Audit Tests for Goodwill and Other Asset Impairments Will Require