Question: 1 2 - 7 LO 3 Ways in which long - lived assets can be fraudulently overstated include: Fictitious assets on the books Improper and

12-7 LO 3 Ways in which long-lived assets can be fraudulently overstated include:
Fictitious assets on the books
Improper and incomplete depreciation
Failure to record impairment of assets, especially goodwill
Expired or worthless assets left on a companys books
Assets overvalued upon acquisition, especially in the purchase of a company.
a. What incentives might motivate management to overstate fixed assets?
b. What other factors should the auditor consider when assessing fraud risk related to long-lived assets?

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