Which of the Following Explanations Might Satisfy an Auditor Who

question 58

Multiple Choice

Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account?

• A) Prior years' depreciation charges were erroneously understated.
• B) There were numerous fixed asset retirements during the year.
• C) There were numerous fixed asset purchases during the year.
• D) A reserve for possible loss on retirement has been recorded.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.