The Audit Objective to Determine That Existing Loans Payable Are

question 112

Multiple Choice

The audit objective to determine that existing loans payable are included in the loans payable schedule (completeness) is accomplished by the following test of balances procedure:

• A) Examine duplicate copies of loan agreements for principal and interest rates.
• B) Trace the individual loans payable on the schedule to the master file.
• C) Review the bank reconciliation for new loans credited directly to the bank account by the bank.
• D) Review loans to determine whether any are related- party loans or accounts payable.

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Definitions:

Refers

The act of directing someone to a different source or person for information, help, or action.

Referral

The action of directing someone to a different person or place for information, help, or action, often leading to new business opportunities.

Prequalified Customer

A potential customer who has been assessed and deemed likely to purchase a product or service based on certain criteria or behaviors.

Telemarketing Agent

A professional who utilizes telephone communication to market goods or services, often employed in call centers or by marketing firms.