The Audit Objective That Requires the Auditor to Determine That

question 24

Multiple Choice

The audit objective that requires the auditor to determine that notes payable on the notes payable schedule are properly classified can be tested by performing the procedure to

• A) confirm notes payable.
• B) examine corporate minutes for loan approval.
• C) examine notes, minutes, and bank confirmations for restrictions.
• D) review the notes to determine whether any are with related parties.

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Definitions:

Union

An organization of workers formed to protect and advance their rights and interests; also refers to the act of uniting or the state of being united.

Income Tax

A tax imposed by the government directly on individuals' or entities' income.

Lincoln

The 16th President of the United States, Abraham Lincoln, who led the nation during the Civil War and is known for issuing the Emancipation Proclamation.