The tests of details of balances procedure that requires the auditor to trace the totals of the notes payable list to the general ledger satisfies the objective of

Question

Quizplus · Accepted Answer

Tracing the totals of the notes payable list to the general ledger ensures that all the notes payable recorded in the list have been included in the general ledger, addressing the completeness objective of the audit. Existence is about ensuring that the notes payable recorded in the general ledger actually exist, accuracy is about ensuring that the amounts recorded in the general ledger are accurate, and rights and obligations is about ensuring that the entity has legal rights and obligations related to the notes payable.

The Tests of Details of Balances Procedure That Requires the Auditor