Which of the Following Explanations Might Satisfy an Auditor Who

question 53

Multiple Choice

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

• A)Several fully depreciated assets were retired during the year.
• B)Prior years' depreciation charges were erroneously understated.
• C)A reserve for possible loss on retirement has been recorded.
• D)An asset has been recorded at its fair value.

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Definitions:

Explicit Awareness

Conscious understanding or knowledge of something, typically involving clear, direct cognition.

Enculturation

The process by which an individual learns the values, norms, customs, and social practices of their culture through socialization.

Subcultures

Cultural groups within a larger culture, often with beliefs or interests at variance with those of the larger culture.

Symbols

Objects, signs, or emblems that represent or stand for something else, often communicating complex ideas, concepts, or values.