Which one of the following factors is not an inherent risk associated with long-lived assets?
A)Obsolescence of assets.
B)Impairment of assets.
C)Incomplete recording of disposals.
D)Lack of physical controls over the long-lived assets.

Question

Quizplus · Accepted Answer

Lack of physical controls over the long-lived assets is related to control risk rather than inherent risk. Inherent risk is associated with the nature of the business or transaction itself, such as obsolescence, impairment, and recording issues, not the controls in place to mitigate those risks.

Which One of the Following Factors Is Not an Inherent