Balance-related audit objectives
A) are never applied to income statement accounts.
B) are designed to detect fraud.
C) provide a framework to help the auditor accumulate sufficient appropriate evidence related to account balances.
D) can have only one specific-related audit objectives.

Question

Quizplus · Accepted Answer

Balance-related audit objectives provide guidance to auditors on the amount and type of evidence necessary to support account balances. They are essential in ensuring that financial statements are free from material misstatements and errors. While they may help detect fraud, this is not their primary objective. Balance-related audit objectives can apply to both balance sheet and income statement accounts, so option A is incorrect. Finally, there may be several specific-related audit objectives associated with each balance-related audit objective, making option D incorrect.

Balance-Related Audit Objectives