When the auditor is determining appropriate depreciation calculations for the classifications in the client's fixed asset master file she is testing the audit objective of:
A) completeness.
B) existence.
C) classification.
D) valuation and allocation.

Question

Quizplus · Accepted Answer

The determination of appropriate depreciation calculations falls under the audit objective of valuation and allocation, which seeks to ensure that assets are appropriately recorded at their correct value and that any related expenses or revenues are properly allocated. The auditor wants to make sure that the depreciation amounts recorded are reasonable and accurately reflect the decrease in the asset's value over time.

When the Auditor Is Determining Appropriate Depreciation Calculations for the Classifications