Two accounts receivable balance-related audit objectives are not affected by assessed control risk for the sales and cash receipts classes of transactions.These objectives are
A)valuation;allocation.
B)allocation;rights and obligations.
C)valuation;rights and obligations.
D)accuracy;existence.

Question

Quizplus · Accepted Answer

The two objectives that are not affected by assessed control risk are valuation and rights and obligations. Valuation refers to ensuring that the accounts receivable balances are recorded at their proper amount, while rights and obligations refer to ensuring that the entity has the legal right to collect the receivables and that the receivables represent valid claims against customers. These objectives are not affected by assessed control risk because they are based on the accuracy of the account balances and the legal standing of the receivables, which are not related to the effectiveness of internal controls.

Two Accounts Receivable Balance-Related Audit Objectives Are Not Affected by Assessed