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

Question

Quizplus · Accepted Answer

The net realisable value of accounts receivable is not affected by the assessed control risk for sales or cash receipts because the net realisable value is determined by the collectibility of the receivables, which is not affected by the control risk for sales or cash receipts.

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