Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Exercise 15

Which of the following control activities would most likely allow for a reduction in the scope of the auditor's tests of depreciation expense?
A) Review and approval of the periodic equipment depreciation entry by a supervisor who does not actively participate in its preparation.
B) Comparison of equipment account balances for the current year with the current-year budget and prior-year actual balances.
C) Review of the miscellaneous income account for salvage credits and scrap sales of partially depreciated equipment.
D) Authorization of payment of vendor's invoices by a designated employee who is independent of the equipment-receiving function.