When Auditing Depreciation Expense, the Two Major Concerns Related to the Accuracy

question 12

Multiple Choice

When auditing depreciation expense, the two major concerns related to the accuracy audit objective are:

• A) consistent application of depreciation method and useful lives.
• B) consistent application of depreciation method and classification of assets.
• C) correctness of calculations and consistent application of depreciation method.
• D) cost of the fixed asset and useful lives.

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Definitions:

Most Frequent

The outcome or value that occurs most often within a data set or sample.

Central Tendency

A single number or value that describes the typical or central score among a set of scores.

Frequency Distribution

A mathematical function that shows the number of occurrences of each value of a variable, often represented in a table or graph.

Median

A measure of central tendency; the middle score in a distribution of scores that divides the distribution in half.