The auditor is least likely to learn of retirements of equipment through which of the following?
A)Review of depreciation calculations.
B)Review of the purchase returns and allowance account.
C)Review of insurance policy correspondence.
D)Analysis of the debits to the accumulated depreciation account.

Question

Quizplus · Accepted Answer

Review of the purchase returns and allowance account would not provide information about retirements of equipment as it is only used to record returns or allowances granted to customers for goods sold to them. The other options (A, C, D) are all potential sources of information about equipment retirements.

The Auditor Is Least Likely to Learn of Retirements of Equipment