Depreciation expense is normally verified as a part of tests of details of balances rather than as part of tests of controls or substantive tests of transactions.

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Depreciation expense is an account balance that reflects the allocation of the cost of an asset over its useful life. Therefore, it is typically subject to tests of details of balances to ensure that the amount recorded in the balance sheet is accurate and reflects the appropriate amount of depreciation expense for the period. Tests of controls and substantive tests of transactions, on the other hand, are used to assess the effectiveness of internal controls over specific transaction cycles, and are not directly related to the accuracy of account balances.

Depreciation Expense Is Normally Verified as a Part of Tests