Which balance-related audit objective is not relevant to an audit of prepaid expenses?
A) rights
B) accuracy
C) detail tie-in
D) realizable value

Question

Quizplus · Accepted Answer

The balance-related audit objective of realizable value is not relevant to a prepaid expenses audit, as these are assets that are already paid for and do not involve any consideration of collectability or marketability. The other three balance-related audit objectives listed (rights, accuracy, and detail tie-in) are relevant to a prepaid expenses audit as they pertain to the ownership and valuation of the prepaid items.

Which Balance-Related Audit Objective Is Not Relevant to an Audit