An estimate of the reasonableness of depreciation expense and accumulated depreciation may be accomplished by performing which of the following?
A)tests of controls.
B)substantive tests of transactions.
C)analytical review procedures.
D)management inquiry.

Question

Quizplus · Accepted Answer

Analytical review procedures may be used to estimate the reasonableness of depreciation expense and accumulated depreciation by comparing current year figures to prior year figures, industry averages, and budgeted amounts. Tests of controls, substantive tests of transactions, and management inquiry may not provide sufficient evidence to estimate the reasonableness of depreciation expense and accumulated depreciation.

An Estimate of the Reasonableness of Depreciation Expense and Accumulated