The auditor is testing for the balance-related audit objective of detail tie-in when they
A) prove the schedule of investment activity as to additions and subtractions.
B) perform a physical inspection of the security.
C) verify the quoted market prices.
D) test management's assumptions related to valuation.

Question

Quizplus · Accepted Answer

Detail tie-in refers to ensuring that the total balance of an account agrees with the sum of its individual components. Proving the schedule of investment activity as to additions and subtractions would enable the auditor to ensure that all the transactions have been recorded accurately and completely, thereby ensuring detail tie-in. Physical inspection, verification of quoted market prices, and testing management's assumptions related to valuation are all relevant to other balance-related audit objectives.

The Auditor Is Testing for the Balance-Related Audit Objective of Detail