61 . Which represents the most significant risk associated with restructuring liabilities on the financial statements ? ( Points : 4 )
Future smoothing of income by releasing the reserves . Related party transactions that are not recorded at arms-length . Understatement of assets in the period of recording the liabilities . Payroll liabilities that are not disclosed in the notes .
62 . All of the following are significant issues for consideration when auditing for the impairment of goodwill , except ( Points : 4 )
timing of the assessment by management . amortization in years of the goodwill . clear objective evidence supporting the assessment . understanding the client ' s business and its risks .
63 . Simco ' s shaving products division was acquired over ten years ago in a purchase transaction by BlizzardCraft . The related goodwill was amortized until 2002 and $ 4.5 million remained on the books thereafter . In 2008 , Simco ' s production machinery was assessed for impairment as a long-lived asset because of obsolescence issues . What relationship will the auditors most likely make between the facts stated above ? ( Points : 4 )