This paper circulates around the core theme of Does the recorded depreciation expense seem acceptable? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
12-52 LO 8 The audit senior has asked you to perform analytical proce- dures to obtain… 1 answer below » 12-52 LO 8 The audit senior has asked you to perform analytical proce- dures to obtain substantive evidence on the reasonableness of recorded depreciation expense of the delivery vehicles of a client. Changes in the account occurred pretty much evenly during the year. The estimated useful life is six years. Estimated salvage value is 10% of original cost. Straight-line depreciation is used. Additional information: Delivery Equipment (per General Ledger) View complete question » Beginning balance $380,500 Additions 154,000 12-52 LO 8 The audit senior has asked you to perform analytical proce- dures to obtain substantive evidence on the reasonableness of recorded depreciation expense of the delivery vehicles of a client. Changes in the account occurred pretty much evenly during the year. The estimated useful life is six years. Estimated salvage value is 10% of original cost. Straight-line depreciation is used. Additional information: Delivery Equipment (per General Ledger) Beginning balance $380,500 Additions 154,000 Disposals (95,600) Ending balance $438,900 Current year depreciation expense per books ¼ $60,500 Based on this information, estimate the amount of depreciation expense for the year using analytical procedures. Does the recorded depreciation expense seem acceptable? Explain. What is the impact of the result of this analytical procedure on other substantive pro- cedures that the auditor may perform? View less » Nov 30 2015 05:13 PM
