Analytical Procedurare Not Widely Used in the Audit of Property

question 17

Multiple Choice

Analytical procedurare not widely used in the audit of property, plant, and equipment. Which of the following is not a valid comment about the use of analytical procedurin the audit of PPE?

• A) compare the annual depreciation charge with the cost of an asset to approximate the depreciation rate.
• B) a substantial asset balance variation can be caused by one or a few transactions of which the auditor is likely to already be aware.
• C) comparison of repairs expense with prior years may indicate capitalisation in error.
• D) none of the above is invalid

Comprehend the significance of choosing the right data types and methods for efficient coding practices.

Develop the ability to write simple Java programs that utilize input and output operations.

Acquire knowledge on the standard Java code libraries and their organization into packages, classes, and methods.

Enhance problem-solving skills by writing code snippets and larger programs for specific tasks.

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Definitions:

Account Form Balance Sheet

A type of balance sheet presentation where assets are listed on the left side and liabilities and equity are listed on the right side.

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading its cost over its useful life.

Salvage Value

The estimated resale value of an asset at the end of its useful life, used in calculating depreciation expense.

Depreciation Expense

Depreciation expense is the allocated portion of the cost of a fixed asset, recognized over its useful life, reflecting its decline in value.