Economics · Auditing
Which of the following procedures constitutes a substantive analytical audit procedure for testing depreciation charges?
- 1Re-perform depreciation calculations on a sample of individual assets from the register
- 2Review the board minutes for evidence of approval of asset useful lives
- 3Perform a proof-in-total calculation for the overall depreciation charge and investigate significant differences✓
- 4Review the non-current asset register to ensure that all assets are assigned a useful life
Correct answer
Perform a proof-in-total calculation for the overall depreciation charge and investigate significant differences
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