Complete the first four steps of the seven$-$step framework for professional decision making introduced in Chapter $4$ by answering the following questions:

A$)$What difficulties will the auditor of Novelis face when deciding whether the impairment charges that Novelis incurred are reasonable?

B$)$What are the consequences of the auditor$$s decisions in evaluating impairments?

C$)$What are the risks and uncertainties associated with Novelis$$ estimation?

D$)$ Novelis, Inc., is the world's leading rolled$-$aluminum products producer. Items $1$ through $3$

provide descriptions of issues involving asset impairments derived from the company's

footnote disclosures.

In connection with the decision to close and sell our plant in Borgofranco, Italy, we

recognized an impairment charge of $$5$ million to reduce the net book value of the

plant's fixed assets to zero. We based our estimate on third$-$party offers and

negotiations to sell the business.

We recorded an impairment charge of $$65$ million to reduce the carrying value of

the production equipment at two facilities in Italy to their fair value of $$56$ million.

We determined the fair value of the impaired assets based on the discounted future

cash flows of these facilities using a $7\%$ discount rate.

We announced that we would cease operations in Falkirk, Scotland. We designated

certain production equipment with a nominal carrying value for transfer to our

Rogerstone facility. We reduced the carrying value of the remaining fixed assets to

zero, which resulted in an $$8$ million impairment charge.What types of evidence should the auditor gather to evaluate the reasonableness of management$$s estimates?

Recall that the framework is as follows: