The Audit Objective to Determine That Notes Payable and Accrued

question 19

Multiple Choice

The audit objective to determine that notes payable and accrued interest on the notes payable schedule are accurate is accomplished by which of the following test of balances procedure?

• A)Examine duplicate copies of notes for principal and interest rates.
• B)Review the minutes of the board of directors for authorized but unrecorded notes.
• C)Trace the total of the notes payable schedule to the general ledger.
• D)Review the notes to determine whether any are with related parties or should be accounts payable.

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Definitions:

Begging the Question

A logical fallacy where the argument assumes the truth of the conclusion rather than providing evidence for it.

Argumentum Ad Populum

is a fallacy that concludes a proposition is true because many or most people believe it.

Bandwagon Fallacy

A logical fallacy where one assumes something is true or right because it is popular or because others are doing it.

Unethical Leader

A leader who acts in self-interest, violating moral principles, and often causing harm to the organization, employees, or society at large.