You are the audit manager in charge of auditing the accounts of Brussels Ltd. Materiality for the audit has set at $300,000. Balance date was 30 June 2020. It is the 25th of August 2020 and you are at the client’s premises to undertake the audit. Depreciation expense has been calculated by the client as $3,100,000. 

Required: 

Explain how you would verify this balance using analytical procedures. 

What verification work do you need to perform on the data used in the analytical procedures identified in your answer to part (a)?

How much reliance would you place on the results from your analytical.

Answer rating: 100% (QA)

1 Verification of Depreciation expense Using Analytical Procedure We Apply Analytical procedures for ... View the full answer