Which one of the general tests of details of balance objectives is NOT considered vital in the audit of borrowings?
A) existence
B) valuation
C) completeness
D) realisable value

Question

Quizplus · Accepted Answer

Realisable value is not considered a vital test in the audit of borrowings. The other three tests - existence, completeness, and valuation - are generally regarded as important in the audit of borrowings to ensure that the amounts disclosed in the financial statements are accurate, complete, and supported by appropriate evidence. Realisable value is more relevant to the audit of assets, such as inventory or property, plant, and equipment, where the auditor may need to assess whether these assets are recoverable or have been impaired.

Which One of the General Tests of Details of Balance