The Audit Objective Which Requires the Auditor to Determine That

question 92

Multiple Choice

The audit objective which requires the auditor to determine that loans payable on the loans payable schedule are properly classified can be tested with the following procedure:

• A) Confirm loans payable.
• B) Examine notes, minutes and bank confirmations for restrictions.
• C) Review the notes to determine whether any are with related parties.
• D) Examine corporate minutes for loan approval.

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Definitions:

Disease

A condition that impairs normal functioning and is typically manifested by distinguishing signs and symptoms.

Epidemiological Transition

Refers to the shift from a society characterized by infectious and parasitic disease and low life expectancy to a society where chronic and degenerative diseases dominate and life expectancy is high.

Parasitic Diseases

Illnesses caused by parasites, organisms that live on or in a host organism and benefit at the host's expense.

Degenerative Diseases

Conditions that involve the gradual deterioration of body functions, often associated with aging.