When Reviewing Accumulated Depreciation, the Auditor Seeks Evidence as to the Reasonableness

question 25

Multiple Choice

When reviewing accumulated depreciation, the auditor seeks evidence as to the reasonableness, consistency and accuracy of depreciation charges. The substantive procedures performed seek to provide evidence for which assertion?

• A) accuracy and valuation
• B) completeness
• C) rights and obligations
• D) presentation

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Definitions:

Voltage Drop

The decrease in voltage along a conductor or component while it conducts electric current.

Applied Voltage

The electrical potential difference purposely introduced across a device or component, driving the current through it.

Resistance

An electrical quantity that measures how the device or material reduces the electric current flow through it, measured in Ohms (Ω).

Voltage Across

The electrical potential difference between two points in a circuit, driving the flow of current between those points.