Which audit tests involve physical examination and confirmation?
A)Tests of controls
B)Tests of transactions
C)Tests of balances
D)Analytical procedures

Question

Quizplus · Accepted Answer

Tests of balances involve physical examination of assets, liabilities, and equity balances in order to verify their existence, ownership, completeness, and accuracy. These tests also involve confirmation of selected account balances with third parties, such as banks and customers to provide further evidence of their accuracy. Tests of controls, tests of transactions, and analytical procedures do not typically involve physical examination and confirmation of balances.

Which Audit Tests Involve Physical Examination and Confirmation