For Most Audits, Inherent Risk for Accounts Receivable Is Moderate

question 59

Multiple Choice

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.

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Definitions:

Bonds Dated

The date specified in the bond document when the bond was issued, important for determining interest payments and maturity.

Fair Value

An estimate of the price at which an asset would be bought or sold in a current transaction between willing parties, not under compulsion.

Market Price

The prevailing market rate at which transactions for assets or services are conducted.

Investment Sold

The act of divesting an asset or security, converting an investment back into cash or its cash equivalent.