The transaction-related audit primarily deals with the cash flows of an organization, and the balance-related audit deals with balance computations. While completeness, accuracy and classification are common objectives of both the transaction-related and balance related audits. Existence, cut-offs, realizable value and elaborate tie-ins are added objective in the balance-related audit objectives.

Inorder to scrupulously understand the objectives, is it important to cognize the organization's structural entity and the risks involved? Please share your thoughts on the same.