12-7 LO3 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 company's 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