Final answer:
The statement is false as auditors use multiple techniques beyond testing cash balances when searching for fraud, including analyzing journal entries and reviewing revenue recognition.
Step-by-step explanation:
The statement that only tests of details of cash balances are useful when auditors are specifically testing for fraud is false. When auditors are testing for fraud, they use a variety of techniques, not just tests of cash balances. Auditors may perform other procedures such as analyzing journal entries, reviewing accounting estimates for biases, and testing the appropriateness of revenue recognition. These additional procedures are vital because fraud can occur in many areas beyond just cash balances, such as financial statement fraud or asset misappropriation.