After the general objectives are understood, what is true about developing specific objectives for each relevant account balance?

• A. There should be at least one specific objective for each relevant general objective
• B. There will be only one specific objective for each relevant general objective
• C. There will be many specific objectives developed for each relevant objective
• D. There must be one specific objective for each general objective

Answer: (A)

The main idea is ensuring that every broad audit aim you identified for a balance is explicitly tested through specific, testable objectives. After you understand the general objectives, you create at least one specific objective for each relevant general objective that applies to that balance. This guarantees that all applicable assertions (such as existence, completeness, valuation, rights and obligations, and cutoff) are addressed. If a balance is linked to multiple general objectives, you should have at least one specific objective for each of those general objectives so the procedures will cover every important aspect, not just a single angle. Depending on risk and complexity, you may develop additional specific objectives, but the minimum is one for every relevant general objective.