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You are set to do an audit of the fixed assets.
- Please describe audit tests that you would perform for additions and retirements to fixed assets and depreciation expense (one for each category).
- Does it make a difference if the company does an annual physical inventory of assets?
- Describe 3 internal control procedures that you feel are the most important for fixed assets and what impact they would have on your audit.
- Define asset impairment and the key issues that would need to be addressed within your audit if you encounter asset impairment.
Describe the recoverability test and how it is used.
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