The auditor uses substantive tests of balances to gather evidence for
A)income statement accounts in the inventory process
B)income statement transactions in the inventory process
C)balance sheet accounts in the inventory process
D)balance sheet transactions in the inventory process

Question

Quizplus · Accepted Answer

Substantive tests of balances are used to gather evidence about the ending balances of accounts on the balance sheet. Therefore, the best choice is C, which refers to balance sheet accounts in the inventory process.

The Auditor Uses Substantive Tests of Balances to Gather Evidence