Asset impairment is assessed by the audit team for assets in the manufacturing environment,but not for office equipment and buildings.

Question

Quizplus · Accepted Answer

Asset impairment should be assessed for all types of assets, including office equipment and buildings. The audit team should assess whether the carrying amount of these assets exceeds their recoverable amount and make provisions for any impairment losses as necessary. Failure to assess impairment for all types of assets could result in an incomplete and inaccurate financial statement presentation.

Asset Impairment Is Assessed by the Audit Team for Assets