An Auditor's Purpose in Reviewing the Renewal of a Note

question 117

Multiple Choice

An auditor's purpose in reviewing the renewal of a note payable shortly after the balance sheet date most likely is to obtain evidence concerning management's assertions about:

• A) Occurrence.
• B) Understandability and classification.
• C) Completeness.
• D) Valuation and accuracy.

---

Definitions:

Allergies

Immune system reactions to a foreign substance that is not typically harmful to the body, such as pollen, food, or pet dander.

SOAP Charting

A method of documentation employed by healthcare providers to write out notes in a patient's chart, consisting of four sections: Subjective, Objective, Assessment, and Plan.

Physician's Diagnosis

A medical determination made by a doctor regarding the nature of a patient's illness or condition, based on symptoms and test results.

Test Results

The outcome or findings obtained from conducting a series of examinations or assessments on a subject or sample.