Tests of details for notes payable interest expense and accrued interest can frequently be eliminated when

Question

Quizplus · Accepted Answer

Tests of details for notes payable interest expense and accrued interest can often be reduced or eliminated when the results of analytical review procedures are favorable. This means that if the analytical procedures do not indicate any unexpected fluctuations or inconsistencies in interest expense or accrued interest, auditors may decide that further detailed testing is unnecessary. Analytical review helps auditors to assess the reasonableness of financial statement accounts and can be a powerful tool in assessing the risk of material misstatement.

Tests of Details for Notes Payable Interest Expense and Accrued