On a regular basis management makes decisions about how it uses resources to accomplish its goals. Resources may be deployed on operations and on manage- ment of key processes. Resources may also need to be deployed on capital expen- ditures necessary to support the continuation and growth of operations. Often these capital expenditures are of such magnitude that the entity needs to seek additional financing to acquire necessary assets. The auditor usually wants to obtain answers to the following questions when auditing investing and financing activities: What assets are necessary to support the operations of the entity, and what are management's long-range plans for growing the entity's asset base? What assets were acquired, or disposed of, during the period? How were newly acquired assets financed, and what are management's long- range plans for financing the entity's growth?