Which of the following balance-related audit objectives is not applicable to the audit of notes payable?
A) realizable value
B) detail tie-in
C) cutoff
D) classification

Question

Quizplus · Accepted Answer

The realizable value objective is not applicable to the audit of notes payable because it relates to the valuation of assets and the amount they can be realized upon sale or maturity, which is not relevant for liabilities like notes payable. Notes payable are audited for accuracy in amount (detail tie-in), proper recording of transactions in the correct accounting period (cutoff), and appropriate classification in financial statements (classification).

Which of the Following Balance-Related Audit Objectives Is Not Applicable