Answered: Which step are you performing in the…

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Which step are you performing in the depreciation expense recalculation?

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets: Acquisition, Use, Impairment, And Disposal

Section: Chapter Questions

Problem 52RSCQ

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Question

You use the supplier invoice to populate the "No. of months of depreciation in
the current period" in the depreciation expense recalculation template for a
selected item. Based on this input, the template automatically calculates certain
values.
Which step are you performing in the depreciation expense recalculation?
Recalculate the depreciation expense.
Vouch the data used in the calculation to relevant documentation.
Review the audit file for disconfirming evidence.
Compare the recalculated amounts to the amount recorded in the property,
plant and equipment system.

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Step 1: Indroduction

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Step 2: Depreciation

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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