The Balance-Related Audit Objective Realizable Value Is Not Applicable When
The balance-related audit objective realizable value is not applicable when auditing accounts payable.
When auditing accounts payable,the auditor is more concerned about the possibility of understatements than overstatements.
To test for overstatement cutoff amounts when auditing accounts payable,the auditor should trace receiving reports issued before year-end to related vendors' invoices to make sure they are not recorded as accounts payable.
The "rights "aspect of the "rights and obligations" objective is not applicable to liabilities.