Which of the following best describes tests of details of balances?
A)Audit procedures designed to test for monetary misstatements in the accounts summarized in the financial statements
B)Audit procedures designed to test for the monetary amounts of transactions
C)Audit procedures designed to test for reasonableness of account balances
D)Audit procedures designed to test for effectiveness in recording accounting information

Question

Quizplus · Accepted Answer

Tests of details of balances are audit procedures specifically designed to test for monetary misstatements in the accounts summarized in the financial statements. These procedures are used to ensure the accuracy and completeness of the financial statements by testing the individual account balances within the financial statements.

Which of the Following Best Describes Tests of Details of Balances