The following audit procedure tests primarily which balance- related audit objective for accounts receivable: Review the minutes of the board of directors' meetings for any indication of pledged receivables.
A) Existence
B) Presentation and disclosure
C) Rights and obligations
D) Both B and C above

Question

Quizplus · Accepted Answer

Reviewing the minutes for pledged receivables primarily tests the "Rights and obligations" objective to ensure the company has rights to the receivables and they are not pledged as collateral. It also tests "Presentation and disclosure" to ensure any pledges are properly disclosed in the financial statements.

The Following Audit Procedure Tests Primarily Which Balance- Related Audit