7 One audit approach for proving the yearend balance of cert

7. One audit approach for proving the year-end balance of certain accounts consists of verification of all entries made to the account during the year. The account least suitable to this audit technique is a. plant and equipment. b. bonds payable. c. accounts receivable. d. accumulated depreciation.

Solution

Answer is d. accumulated depreciation

The account least suitable to this audit technique is \"accumulated depreciation\".

In accumulated depreciation account, depreciation amount is accumulated and transferred to this account. Depreciation is calculated as per specific method and there is no need of any specific verification of all entries made to the account during the year.So, accumulated depreciation account is least suitable to the audit technique.