Only tests of details of cash balances are useful when auditors are specifically testing for fraud.

Question

Quizplus · Accepted Answer

While tests of details of cash balances are important in detecting certain types of fraud, they are not the only tests that auditors use to detect fraud. Auditors must employ a variety of procedures, including analytical procedures and tests of controls, to obtain reasonable assurance that financial statements are free from material misstatement, including fraud.

Only Tests of Details of Cash Balances Are Useful When