The Tests of Details of Balances Procedure Which Requires the Auditor

question 35

Multiple Choice

The tests of details of balances procedure which requires the auditor to trace the totals of the notes payable list to the general ledger satisfies the audit objective of

• A) accuracy.
• B) existence.
• C) detail tie-in.
• D) completeness.

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Definitions:

Management Structure

The hierarchical arrangement of lines of authority, communications, rights, and duties within an organization.

Franchise

A business model that allows individuals to own and operate their branch or location of an existing larger brand or business.

Disadvantages

The negative or less favorable aspects of a situation, decision, or business strategy.

Franchisor

A business entity that allows individuals or other businesses to operate a location or outlets under its brand name, providing a business model, brand, and support in exchange for fees and adherence to its operational guidelines.