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:

Independent Auditors

Professional auditors who are not employees of the company being audited and provide an unbiased opinion on the truth and fairness of a company's financial statements.

Financial Statements

Reports that summarize the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement.

Accuracy

The extent to which the outcome of a calculation, measurement, or specification matches the accurate value or a standard.

Audit Function

The process of examining financial records and transactions by a third party to ensure accuracy and compliance with accounting standards.