At what point in the audit process are tests of details most appropriately designed?
A) plan and design audit approach
B) perform audit tests of controls and substantive tests of transactions
C) perform substantive analytical procedures and tests of details of balances
D) complete the audit and issue the audit report

Question

Quizplus · Accepted Answer

Tests of details are most appropriately designed at the stage of performing substantive analytical procedures and tests of details of balances, which is when the auditors gather evidence to support the assertions made by management in the financial statements. At this point, the auditors have gained an understanding of the entity's internal controls through tests of controls and substantive tests of transactions, and can focus on testing the details of account balances and transactions.

At What Point in the Audit Process Are Tests of Details