Why are the long-lived assets and inventory assertions of
existence said to have an inherent risk...
Why are the long-lived assets and inventory assertions of
existence said to have an inherent risk of material misstatement
that is higher than that of the account payable?
Why are the long-lived assets and inventory assertions of
existence said to have an inherent risk of material misstatement
that is higher than that of the account payable? (10%)
1. Why are the long-lived assets and inventory
assertions of existence said to have an inherent risk of material
misstatement that is higher than that of the account payable?
2. Do you think the blank confirmation is included in the positive
or negative confirmation? Also explain what the advantages and
disadvantages of each type of confirmation are, along with what
kind of situation it is suitable to use!
3. Why is a cash account said to have a high inherent...
1. Why is a cash account said to have a high inherent
risk of possible fraud? Explain some of the controls related to
cash accounts!
2. You are an auditor at a public accounting firm. You
are conducting an audit for the financial year ending December 31,
2019. Your client has go public. This client is a property
development company. Your client builds property in the form of
apartment units, housing / real estate and also property investment
products in...
Blocher Company is evaluating the following methods of
accounting for depreciation of long-lived assets and
inventory:
Depreciation: straight-line; double-declining balance (DDB)
Inventory: first in, first out (FIFO); last in, first out
(LIFO)
Assuming a deflationary environment (prices are falling), which of
the following combinations will result in the highest net income in
year 1?
Group of answer choices
A) DDB; FIFO.
B) Straight-line; LIFO.
C) Straight-line; FIFO.
According to Asset Valuation principle, in IFRS how the
long lived assets are valued at the acquisition and throughout its
life? Explain with two examples.
Explain why certain long-lived assets are capatilized and
recovered over time rather than immediately expensed. Please
explain in depth and provide example.