The test of details of balances procedure for PPE which requires 'examination of vendor's invoices and land titles and deeds' is done to satisfy which audit objective?
A) accuracy
B) classification
C) existence
D) rights

Question

Quizplus · Accepted Answer

The examination of vendor's invoices and land titles and deeds is done to satisfy the audit objective of rights, which ensures that the entity has legal ownership or rights to use its PPE. The examination of these documents helps the auditor to verify that the assets exist, are properly recorded, and that the entity has the right to use them.

The Test of Details of Balances Procedure for PPE Which