At what point in the audit process are tests of details most appropriately designed?
A)Plan and design audit approach
B)Perform audit tests for controls and transactions
C)Perform analytical procedures and tests of balances
D)Complete the audit and issue the audit report

Question

Quizplus · Accepted Answer

Tests of details are most appropriately designed during the stage of performing analytical procedures and tests of balances. This stage involves the detailed testing of account balances, transactions, and disclosures to provide sufficient and appropriate evidence to support the financial statements. Testing at this stage can help to identify any material misstatements or errors in the financial statements. The other stages such as planning and designing the approach, performing audit tests for controls and transactions, and completing the audit and issuing the audit report are also important, but they focus more on assessing the risks, evaluating the design and effectiveness of internal controls, and ensuring the accuracy of the financial statements, rather than testing the details of transactions and balances.

At What Point in the Audit Process Are Tests of Details