An Auditor Is Determining Whether an Issuance of Notes Payable

question 74

Multiple Choice

An auditor is determining whether an issuance of notes payable for cash was correctly recorded.Her best course of action would be to

• A)confirm with the bond trustee as to the amount of bonds issued.
• B)confirm with the underwriter as to the appropriate market yield on the bonds.
• C)trace the cash received from the proceeds to the accounting records.
• D)verify that the amount was included in a footnote disclosure.

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Definitions:

Liquid Stool

Stool that is more liquid than solid, often indicating diarrhea or a gastrointestinal condition affecting digestion and absorption.

Fecal Occult Blood

The presence of blood in the feces that is not visible to the naked eye, often a sign of gastrointestinal diseases.

False-negative

A test result that incorrectly indicates the absence of a condition or disease when it is actually present.

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Surgical procedures that create an opening from the colon to the surface of the abdomen, allowing for the diversion of bowel contents.