Which of the following best describes the independent auditor's approach to obtaining satisfaction concerning depreciation expense in the income statement?

Question

Quizplus · Accepted Answer

The independent auditor's approach to obtaining satisfaction concerning depreciation expense in the income statement primarily involves establishing the reasonableness of useful lives and depreciation methods for depreciable assets and recomputing the depreciation expense. This ensures that the financial statements fairly present the company's financial position and results of operations in accordance with generally accepted accounting principles. Verifying mathematical accuracy and reconciling amounts are important considerations, but they are secondary to ensuring the reasonableness of the underlying assumptions and methods used to calculate depreciation expense. Therefore, option D is the best choice.

Which of the Following Best Describes the Independent Auditor's Approach