When Auditing Depreciation Expense, the Two Major Concerns Related to the Accuracy

question 44

Multiple Choice

When auditing depreciation expense, the two major concerns related to the accuracy audit objective are

• A) consistent application of depreciation method and useful lives.
• B) consistent application of depreciation method and classification of assets.
• C) correctness of calculations and consistent application of depreciation policies.
• D) cost of the fixed asset and useful lives.

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Definitions:

Gas Mileage

A measure of a vehicle's fuel efficiency, typically expressed in miles per gallon (mpg) or kilometers per liter (km/l).

Consumers Union

A non-profit organization that conducts research and advocacy on behalf of consumers to ensure fair and safe products and services are available in the market.

Histogram

A graphical representation of the distribution of numerical data, where the data is grouped into bins or intervals.

Categorical Values

Values that are classified into categories or groups and are typically qualitative in nature.