The test of details of balance procedure which requires the auditor to foot the loans payable list for loans payable and accrued interest satisfies which audit objective?
A) detail tie-in
B) existence
C) completeness
D) accuracy

Question

Quizplus · Accepted Answer

The procedure of foot the loans payable list for loans payable and accrued interest is used to ensure that the ending balance of loans payable and accrued interest included in the financial statements agrees with the total of the detailed list of individual loan balances. This procedure helps to satisfy the audit objective of detail tie-in which requires that the ledger balances are reconciled with the related master file or supporting documentation.

The Test of Details of Balance Procedure Which Requires the Auditor