Determining that proper amounts of depreciation are expensed provides assurance about management's assertions of presentation and disclosure and:
A)valuation and allocation.
B)completeness.
C)rights and obligations.
D)existence.

Question

Quizplus · Accepted Answer

Proper amounts of depreciation are necessary for accurate valuation and allocation of assets. This helps to ensure that management's presentations and disclosures are accurate and complete. Depreciation expense also affects the completeness of financial statements, as it directly impacts the calculation of net income. However, depreciation expense does not provide direct assurance about rights and obligations or the existence of assets.

Determining That Proper Amounts of Depreciation Are Expensed Provides Assurance