Depreciation expense is normally verified using tests of controls and substantive tests of transactions.

Question

Quizplus · Accepted Answer

Depreciation expense is not tested through substantive tests of transactions as it is a non-cash expense and does not involve a specific transaction. Rather, it is tested through substantive analytical procedures and tests of controls over the process of calculating and recording depreciation.

Depreciation Expense Is Normally Verified Using Tests of Controls and Substantive