Which of the Following Audit Tests Would Provide Evidence Regarding

question 47

Multiple Choice

Which of the following audit tests would provide evidence regarding the balance-related audit objective of existence for an audit of notes payable?

• A) Examine due dates on duplicate copies of notes.
• B) Examine balance sheet for proper presentation and disclosure of notes payable.
• C) Examine corporate minutes for loan approval.
• D) Foot the notes payable list for notes payable and accrued interest.

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Definitions:

Petty Cash

A small amount of cash kept on hand for minor, incidental expenses.

Cash Over And Short

An account used to report minor discrepancies between physical cash amounts and accounting records.

Receipts For Disbursements

These are documents that serve as proof of payment transactions, such as the payment of expenses or the distribution of cash.

Petty Cash Fund

A minimal sum of money kept in reserve for covering minor costs that aren't worth issuing a check for.