The auditor's principal objective when using a sample of tests of details of balances is whether the
A) account balance being audited is fairly stated.
B) transactions being audited are free of misstatements.
C) controls being tested are operating effectively.
D) transactions and account balances being audited are fairly stated.

Question

Quizplus · Accepted Answer

The principal objective of using a sample of test of details of balances is to determine whether the account balance being audited is fairly stated. The auditor selects a sample of transactions and checks whether the individual items in the sample support the balance in question. This provides the auditor with evidence about the accuracy and completeness of the balance being audited. Therefore, option A is the correct answer. Option B relates to the objective of testing transactions for existence and occurrence, which is different from the objective of testing details of balances. Option C is related to testing controls rather than testing details of balances. Option D is too broad and does not specifically state the primary objective of testing details of balances.

The Auditor's Principal Objective When Using a Sample of Tests