The Audit Objective That Requires That Existing Notes Payable Be

question 1

Multiple Choice

The audit objective that requires that existing notes payable be included in the notes payable schedule is satisfied by performing which of the following audit procedures?

• A) Confirm notes payable.
• B) Trace the total of the notes payable schedule to the general ledger.
• C) Review the notes payable schedule to determine whether any are related parties.
• D) Review the bank reconciliation for new notes credited directly to the bank account by the bank.

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Definitions:

Maxim

A short, pithy statement expressing a general truth or rule of conduct.

Agent's Reasons

Refers to the motivations or underlying reasons that drive an individual's decisions or actions.

Morality

Guidelines that separate commendable from condemnable actions.

Rationality

The quality of being based on or in accordance with reason or logic.