An Auditor Is Determining Whether an Issuance of Notes Payable

question 108

Multiple Choice

An auditor is determining whether an issuance of notes payable for cash was correctly recorded. Her or his 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:

Change Documentation Process

A systematic approach to recording, managing, and implementing changes in a project to ensure traceability and compliance.

Time Needed

The duration required to complete a task, project, or process.

Common Understanding

Shared knowledge or agreement among individuals or groups regarding a specific topic or project.

Project Purpose

The fundamental reason for the initiation of a project, often aligned with specific goals or desired outcomes.