Which Method Might an Auditor Utilize in Testing Depletion Expense

question 70

Multiple Choice

Which method might an auditor utilize in testing depletion expense?

• A)using analytical procedures.
• B)observation of the physical count.
• C)obtaining management representation.
• D)estimating the useful life of the natural resource.

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Definitions:

Financial Position

A snapshot of a company's financial health, encompassing assets, liabilities, and equity at a given point in time.

Specific Date

A particular day specified for a certain event, transaction, or deadline.

Return On Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring efficiency in generating earnings.

Ratio Form

A mathematical expression that represents the relationship between two numbers or variables as a fraction.