Which of the Following Is not One of the Auditors

question 29

Multiple Choice

Which of the following is not one of the auditors' objectives in auditing depreciation?

• A)Establishing the reasonableness of the client's replacement policy.
• B)Establishing that the methods used are appropriate.
• C)Establishing that the methods are consistently applied.
• D)Establishing the reasonableness of depreciation computations.

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project.

IRR

The Internal Rate of Return is a financial indicator utilized to evaluate the potential returns of investments.

Bid Price

The highest price that a buyer is willing to pay for a security.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios), often for the purpose of planning through uncertainty.