Final answer:
An audit document that shows the detailed components of a financial statement amount is known as a supporting schedule, which is crucial for verifying financial statement accuracy.
Step-by-step explanation:
An audit document that reflects the major components of an amount reported in the financial statements is referred to as a supporting schedule. This document is of great importance in the audit process as it provides a breakdown of the aggregated data. For example, the supporting schedule for property, plant, and equipment would list individual assets, their cost, accumulated depreciation, and book value.
Such documents help auditors in verifying the accuracy and completeness of the financial statements. Similarly, a supporting schedule for accounts receivable might detail outstanding balances by the customer, which the auditor can then confirm directly. These schedules are essential for both internal and external stakeholders to understand the details behind the final figures presented in the financial reports.