Auditors Should Make Inquiries About Whether There Is Knowledge of Fraud

question 32

Multiple Choice

Auditors should make inquiries about whether there is knowledge of fraud in the company. Such inquiries should be made of:

• A) management.
• B) the audit committee.
• C) internal auditors.
• D) All of the above.

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Definitions:

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life.

Straight-Line Method

A method of depreciation that allocates an asset's cost evenly throughout its useful life.

Carrying Amount

The value at which an asset or liability is recognized on the balance sheet, calculated as its original cost minus depreciation or amortization.

Useful Life

The period over which an asset is expected to be available for use by an entity; or the number of production or similar units expected to be obtained from the asset by an entity.