What might motivate management to overstate fixed assets Why accounting homework help

Consider the audit risks related to fixed assets, specifically the risk that the asset balances are overstated or the related liabilities associated with the fixed assets are understated.

Please respond to all of the following prompts in one combined main response:

Topic: Risks Related to Fixed Assets

  • What might motivate management to overstate fixed assets? Why?
  • What might motivate management to understate the liabilities associated with fixed assets? Why?
  • How might an understanding of auditing procedures and audit results help a client improve controls over fixed assets?

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