During a meeting with the senior management of GreenGrass Enterprises, LLC, a distributor of lawn care...
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During a meeting with the senior management of GreenGrass Enterprises, LLC, a distributor of lawn care and fertilizer products across the country, a query has been raised by the external auditors pertaining to the client's use of double-declining balance method depreciation. The auditors are attempting to confirm their understanding as to why the client uses this method. The documentation and reasoning behind this choice of accounting method is most likely to be found O in the current year's audit file, and typically located in the risk assessment section under substantive tests of details. O in the minutes of the board of directors meeting, as this choice of depreciation method has to be voted on by senior management at least once a year. O in the internal audit function, as this function, per generally accepted auditing standards, maintains responsibility for selection of appropriate accounting methods. O in the permanent audit file, which typically contains details of significant accounting methods used by the client. During a meeting with the senior management of GreenGrass Enterprises, LLC, a distributor of lawn care and fertilizer products across the country, a query has been raised by the external auditors pertaining to the client's use of double-declining balance method depreciation. The auditors are attempting to confirm their understanding as to why the client uses this method. The documentation and reasoning behind this choice of accounting method is most likely to be found O in the current year's audit file, and typically located in the risk assessment section under substantive tests of details. O in the minutes of the board of directors meeting, as this choice of depreciation method has to be voted on by senior management at least once a year. O in the internal audit function, as this function, per generally accepted auditing standards, maintains responsibility for selection of appropriate accounting methods. O in the permanent audit file, which typically contains details of significant accounting methods used by the client.
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Related Book For
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
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