During an Audit, Wicks Learns That the Entity Was Granted

question 59

Multiple Choice

During an audit, Wicks learns that the entity was granted a 3-month waiver of the repayment of principal on the installment loan with Blank Bank without an extension of the maturity date, which is one year in the future. With respect to this loan, the audit program used by Wicks is least likely to include a verification of the

• A) Interest expense for the year.
• B) Balloon payment.
• C) Total liability at year-end.
• D) Installment loan payments.

---

Definitions:

Utricle

A small sac-like structure in the inner ear that is part of the vestibular system, helping to sense gravity and linear acceleration.

Saccule

A small, fluid-filled cavity or sac within the vestibular system of the inner ear, playing a key role in balance and orientation.

Vestibule

An entrance hall or other open area in a building used by the public, especially a hotel or theater.

Acoustic

Pertaining to sound or the sense of hearing.