What are the initial steps for a test of details of balances when using a sample?
A) Determine the sampling method.
B) Determine which assertion is being tested.
C) Determine which account is being tested.
D) Both b and c.

Question

Quizplus · Accepted Answer

When conducting a test of details of balances using a sample, the initial steps include determining which assertion is being tested (such as existence or completeness) and which account is being tested. Therefore, both options B and C are correct. Additionally, selecting an appropriate sampling method is also an important initial step in this process, making option A also relevant. However, since options B and C are both necessary steps and are combined in option D, it is the best choice.

What Are the Initial Steps for a Test of Details