When auditing insurance expense, auditors normally rely on analytical procedures and limited testing of the debits to ensure that they arose from credits to prepaid insurance.

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Auditors typically use analytical procedures and limited testing of the debits to verify that they originate from credits to prepaid insurance. This approach helps to ensure that the insurance expense recorded in the financial statements is accurate and complete. However, if the auditor identifies any discrepancies or concerns during their testing, they may need to conduct additional procedures to obtain sufficient evidence.

When Auditing Insurance Expense, Auditors Normally Rely on Analytical Procedures