When Reading the Corporate Minutes,the Auditor Obtained Information Regarding Loans

question 34

Multiple Choice

When reading the corporate minutes,the auditor obtained information regarding loans that were authorized for borrowing.What audit step would the auditor likely conduct with this information?

• A)trace the authorized amounts to the bank statements
• B)verify that notes payable have been recorded
• C)calculate interest payable as of the end of the year
• D)contact a credit rating agency to determine the rating of the lender

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Definitions:

Stereochemical

Pertaining to the spatial arrangement of atoms in molecules and the effect of this arrangement on the chemical and physical properties of those molecules.

Regio-

A prefix in chemistry referring to the region or position in a molecule where a reaction takes place, often used in terms like "regioselective" or "regiospecific".

Moles

A unit of measurement in chemistry representing the amount of a substance that contains the same number of entities as there are atoms in 12 grams of pure carbon-12.

Hex-1-ene

An alkene with the chemical formula C6H12, characterized by a double bond between the first and second carbon atoms, used in the synthesis of polymers.