Which of the Following Is Not a Technique That Auditors

question 69

Multiple Choice

Which of the following is not a technique that auditors can use when performing planning analytical procedures related to long-lived assets?

• A)Perform an overall estimate of depreciation expense.
• B)Review and analyze gains/losses on disposals of equipment.
• C)Compare depreciable lives used by the client for various asset categories with those of the industry.
• D)All the above are techniques that auditors can use.

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Definitions:

Marginal Productivity

The additional output that is produced by using one more unit of a given input, while keeping other inputs constant.

Flood

An overflow of water that submerges land that is usually dry, often caused by heavy rain, melting snow, or breach in water containment systems.

Inputs

Resources used in the process of production, including labor, materials, and capital.

Derived Demand

Derived demand occurs for a factor of production when the demand for another good or service drives it, such as the demand for raw materials increasing due to higher demand for the final product.