Auditing And Assurance Services
Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 19, Problem 13RQ
To determine

Explain the way through which the approach for verifying repair expense differs from that used to audit depreciation expense. Also, explain the reason for the differences in approach.

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Verifying repair costs will be handled differently from auditing depreciation costs. What's the rationale for the shift in strategy?
What serious consequences occur in an inaccurate estimate of asset needs?
In practice, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case.
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