Tests of details of balances typically involve the use of comparisons and relationships to assess the overall reasonableness of account balances.

Question

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Tests of details of balances focus on verifying the accuracy, existence, rights and obligations, and completeness of the account balances through direct verification methods such as inspection, observation, confirmation, and recalculation, rather than assessing overall reasonableness through comparisons and relationships, which is more characteristic of analytical procedures.

Tests of Details of Balances Typically Involve the Use of Comparisons