When the Auditor Is Determining Whether the Client Followed a Consistent

question 89

Multiple Choice

When the auditor is determining whether the client followed a consistent depreciation policy from period to period, and the client's depreciation calculations are correct, the balance-related audit objective of ________ is being determined for depreciation expense.

• A) completeness
• B) existence
• C) classification
• D) accuracy

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Definitions:

Total Costs

The sum of fixed and variable expenses incurred by a business in the production of goods or services.

Labor Costs

The total sum of all financial compensations and benefits given to employees in exchange for their work, including wages, salaries, and additional perks.

Substitute Resources

Substitute Resources are alternative inputs that can be used in place of another in the production process, often due to cost advantages or availability.

Labor Union

An organization representing workers' interests, focusing on negotiating wages, work hours, benefits, and working conditions.