An Audit Procedure That Is Part of the Audit of Notes

question 3

Multiple Choice

An audit procedure that is part of the audit of notes payable is the review of the permanent audit working paper files to determine if there are restrictions on the payment of dividends in bond indenture agreements or preferred share provisions.Which presentation and disclosure audit assertion is this associated with?

• A)valuation
• B)completeness
• C)existence
• D)classification

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Definitions:

True Null Hypothesis

The hypothesis that there is no effect or no difference, and it is the actual truth in the context of hypothesis testing.

Rejects

In statistical analysis, to reject refers to the decision of dismissing the null hypothesis based on the evidence provided by the data.

Type I Error Probability

The probability of incorrectly rejecting the null hypothesis when it is true, often denoted by alpha.

Reject

In statistical analysis, it refers to the decision to not accept the null hypothesis based on the results of the test.