Which of the Following Internal Controls Over Notes Payable Address

question 28

Multiple Choice

Which of the following internal controls over notes payable address risks associated with the accuracy,allocation,and completeness audit assertions?

• A)Renewals or new notes should be approved by the board of directors (as evidenced in the minutes)or by senior management.
• B)Authorized employees should perform independent recalculations of interest and reconciliation of the notes payable balance to the general ledger.
• C)Subsidiary records should be maintained for each note and there should be control over blank and paid notes.
• D)Paid notes should be cancelled and retained under the custody of an authorized official.

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Definitions:

Medicare, Medicaid

United States government programs providing health coverage; Medicare is for people over 65 or with specific disabilities, Medicaid for individuals and families with limited income.

Private Insurance

An insurance service provided by non-governmental entities, covering health, life, and other areas, where premiums are paid for individual or group coverage.

Electronic Medical Record

Digital version of a patient's paper chart, containing medical and treatment history within one practice.

Messy Handwriting

Handwriting that is difficult to read due to irregular spacing, size, or slant of letters, potentially affecting communication.