In verifying accumulated depreciation, the credits to accumulated depreciation are verified as part of the audit of depreciation expense, whereas the debits are normally tested as a part of the audit of:
A) disposal of assets.
B) capital acquisitions.
C) accumulated depreciation.
D) asset acquisitions.

Question

Quizplus · Accepted Answer

The credits to accumulated depreciation account are verified as part of the audit of depreciation expense because depreciation expense is a credit entry to the income statement and a corresponding credit entry is made to the accumulated depreciation account. Therefore, the debits to accumulated depreciation are normally tested as a part of the audit of disposal of assets, as any disposal of an asset will involve reducing the accumulated depreciation balance.

In Verifying Accumulated Depreciation, the Credits to Accumulated Depreciation Are