The audit evidence gathering technique known as computation or recalculation refers to ________.
A) sending letters to independent third parties
B) counting inventory
C) recalculating depreciation
D) checking prices as per the price list

Question

Quizplus · Accepted Answer

Computation or recalculation involves verifying the accuracy of mathematical calculations performed by the client, such as recalculating depreciation expenses or interest payments. Therefore, option C is the correct choice. The other options involve different audit evidence gathering techniques, such as confirmation (option A), observation (option B), and inspection (option D).

The Audit Evidence Gathering Technique Known as Computation or Recalculation