An Important Balance-Related Audit Objective Is Realizable Value

question 179

Essay

An important balance-related audit objective is realizable value. Describe the purpose of this audit objective, what it is concerned with, and give an example.

---

Definitions:

Transform Boundary

A type of tectonic plate boundary where two plates slide horizontally past each other, often causing earthquakes.

Reverse Fault

A type of fault where the hanging wall moves upward relative to the footwall, typically occurring at convergent plate boundaries.

Continental Rift

A linear zone where the Earth's crust and lithosphere are being pulled apart and is an early stage of continental breakup.

Seismic Station

The location of a scientific instrument (seismograph) that measures seismic vibrations.