For most audits, inherent risk for accounts receivable is moderate or low except for which balance-related audit objectives?
A) Timing and realizable value.
B) Completeness and existence.
C) Existence and accuracy.
D) Realizable value and cutoff.

Question

Quizplus · Accepted Answer

Realizable value and cutoff are balance-related audit objectives where inherent risk for accounts receivable is typically higher due to the potential for misstatements in valuation and timing of revenue recognition.

For Most Audits, Inherent Risk for Accounts Receivable Is Moderate