Substantive tests of details of balances are specific procedures intended to
A)identify the details of internal controls.
B)prove that the accounts with material balances are classified correctly.
C)detect monetary misstatements in the financial statements.
D)prove that the trial balance is in balance.

Question

Quizplus · Accepted Answer

Substantive tests of details of balances are designed to detect monetary misstatements in the financial statements. These tests provide evidence about the accuracy, completeness, and validity of account balances, transactions, and supporting records. They are used to confirm the existence, ownership, completeness, accuracy, authorization, and valuation of account balances.

Substantive Tests of Details of Balances Are Specific Procedures Intended