If the auditor is testing the reasonableness of depreciation expense for the year, which assertion is being tested?
A) Completeness.
B) Rights and Obligations.
C) Existence.
D) Valuation

Question

Quizplus · Accepted Answer

The assertion being tested is Valuation as the auditor is checking whether the depreciation expense is correctly calculated and recorded in the financial statements. The valuation assertion relates to the accuracy of the accounting amounts or measurements of the financial statement items. Completeness, Rights and Obligations, and Existence assertions are different from Valuation and are not directly relevant to testing the reasonableness of depreciation expense.

If the Auditor Is Testing the Reasonableness of Depreciation Expense