An auditor is performing a credit analysis of customers with balances over 60 days due.She is most likely obtaining evidence for which audit related objective?
A)Realizable value
B)Existence
C)Completeness
D)Occurrence

Question

Quizplus · Accepted Answer

The auditor is obtaining evidence to determine whether the accounts receivable balances are realistically collectible, which is related to the realizable value audit objective. This analysis involves an evaluation of customers' creditworthiness, payment history, and other factors that may affect their ability to pay their outstanding balances. The other three audit objectives (existence, completeness, and occurrence) might also be relevant to the auditor's overall assessment of accounts receivable, but they are not the primary focus of an analysis of customers with balances over 60 days due.

An Auditor Is Performing a Credit Analysis of Customers with Balances