Balance-related audit objectives are applied to which types of general ledger accounts?
A)balance sheet accounts only
B)income statement accounts only
C)balance sheet accounts and some income statement accounts
D)accounts that affect the cash flow statement

Question

Quizplus · Accepted Answer

Balance-related audit objectives are applicable to balance sheet accounts as they represent the assets, liabilities, and equity of the organization. Additionally, some income statement accounts may also be subject to balance-related audit objectives as they may have a direct impact on the balances of the balance sheet accounts (e.g. accruals, deferrals, depreciation). The cash flow statement is not directly relevant to balance-related audit objectives.

Balance-Related Audit Objectives Are Applied to Which Types of General