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 policies.
D) cost of the fixed asset and useful lives.

Question

Quizplus · Accepted Answer

The accuracy audit objective for depreciation expense focuses on the correctness of the calculations and the consistency of the application of depreciation policies. This includes verifying that depreciation is calculated correctly using the appropriate method and useful lives, and that these methods and lives are consistently applied across all relevant assets. The other answer choices are either incomplete or not as relevant to the accuracy audit objective for depreciation expense.

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