In determining the reasonableness of the client's amount for depreciation expense the auditor is primarily concerned that the client has followed a consistent policy and the calculations are correct.Which of the following audit objectives best addresses the above concerns?
A)Existence
B)Accuracy
C)Valuation
D)Allocation

Question

Quizplus · Accepted Answer

The audit objective of accuracy ensures that the financial statements are free from material misstatements, and the amounts and other data are accurate. In this case, the auditor is concerned with the client's calculation of depreciation, which falls under the accuracy objective. Additionally, consistency in policy is a component of reliability, which is a characteristic of faithful representation, a key ingredient of accuracy.

In Determining the Reasonableness of the Client's Amount for Depreciation