The accounts receivable balance-related audit objective net realizable value is not affected by assessed control risk for sales or cash receipts.

Question

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The accounts receivable balance-related audit objective of net realizable value is not affected by the assessed control risk for sales or cash receipts. This is because net realizable value is a measurement of the accounts receivable balance's estimated collectible amount, which depends on factors like customer creditworthiness and the age of the receivables. It is not impacted by the level of control risk in the sales or cash receipts process.

The Accounts Receivable Balance-Related Audit Objective Net Realizable Value Is