Final answer:
The proper expensing of depreciation assures management's assertions of valuation and allocation, as well as the completeness of financial statements. It is crucial for accurately representing a company's profitability.
Step-by-step explanation:
Determining that proper amounts of depreciation are expensed provides assurance about management's assertions of valuation and allocation and 4) completeness. When the right amount of depreciation is recorded, it reflects the correct value of assets over time and ensures that the company's financial statements provide a complete picture of its financial position.
This is essential for accurately reporting on matters of profitability, which depends on the correct valuation of assets and the allocation of depreciation expenses. In contrast, liquidity and solvency are more concerned with the company's ability to pay its debts and maintain operations in the short and long term, respectively.