In Determining the Reasonableness of the Client's Amount for Depreciation

question 81

Multiple Choice

In determining the reasonableness of the client's amount for depreciation expense the auditor is primarily concerned that the client has followed a consistent policy and the calculations are correct.Which of the following audit objectives best addresses the above concerns?

• A)Existence
• B)Accuracy
• C)Valuation
• D)Allocation

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Definitions:

Correlational Studies

Research methods that examine the relationship between two or more variables to determine if a change in one is associated with a change in another.

Observational Methods

Research techniques in which subjects are observed in their natural environment or within a controlled environment without interference from the researchers.

Case History Method

A research approach that involves an in-depth investigation of a single subject or group to uncover patterns and insights.

Randomized

Pertaining to a process of selection or arrangement in which each item of a set has an equal probability of being chosen.