Tests of the realizable value balance-related audit objective are for the purpose of evaluating the allowance for doubtful accounts.

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Tests of the realizable value balance-related audit objective typically focus on evaluating the allowance for doubtful accounts, which is a reserve account that reflects the estimated amount of accounts receivable that may not be collectible. By testing the allowance for doubtful accounts, auditors can assess whether the recorded amounts of accounts receivable are fairly stated in the financial statements.

Tests of the Realizable Value Balance-Related Audit Objective Are for the Purpose