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 audit objective related to realizable value is not relevant to prepaid expenses because prepaid expenses do not have a realizable value. Prepaid expenses are assets that have already been paid for but have not yet been used or consumed. Therefore, the realizable value of prepaid expenses is not applicable. The other balance-related audit objectives listed (rights, accuracy, and detail tie-in) are relevant to auditing prepaid expenses.

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