Determining that accrued payroll payables are the obligations of the entity is an example of which of the following?
A)Substantive analytical procedures
B)Tests of details of transactions
C)Tests of details of balances
D)Audit data analytics

Question

Quizplus · Accepted Answer

Accrued payroll payables are a part of accounts payable and accruals. Tests of details of balances are performed to test the completeness and accuracy of accounts payable and accruals. Therefore, determining that accrued payroll payables are the obligations of the entity is an example of tests of details of balances.

Determining That Accrued Payroll Payables Are the Obligations of the Entity