Tests of Details of Balances Are Specific Audit Procedures That

question 59

Multiple Choice

Tests of details of balances are specific audit procedures that are intended to:

• A)test for monetary misstatements in the financial statements.
• B)prove that the accounts with material balances are classified correctly.
• C)prove that the trial balance is in balance.
• D)identify the details of the internal control system.

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Definitions:

IASB

International Accounting Standards Board, the organization responsible for issuing and updating International Financial Reporting Standards (IFRS).

Accounting Principles

Established guidelines and standards for financial reporting and accounting practices.

Conventions

Agreed-upon principles or practices that guide actions and decisions in specific contexts, such as accounting conventions which guide financial reporting.