Which of the following factors is not an inherent risk related to asset impairment?
A)Management is normally not interested in identifying and writing down assets.
B)Sometimes management wants to write down every potentially impaired asset to a minimum realizable value.
C)Determining asset impairment requires a good information system,a systematic process,effective controls,and professional judgment.
D)All of the above are inherent risk factors.

Question

Quizplus · Accepted Answer

All the options listed are inherent risk factors related to asset impairment. Option A highlights management's potential lack of interest in identifying and writing down assets, which can lead to an overstatement of asset values. Option B points to the opposite risk where management might want to overstate impairments, potentially understating asset values. Option C emphasizes the complexity and judgment required in assessing impairments, which inherently carries risk.

Which of the Following Factors Is Not an Inherent Risk