Which of the Following Questions Would Auditors Most Likely Include

question 27

Multiple Choice

Which of the following questions would auditors most likely include on an internal control questionnaire for notes payable?

• A)Are assets that collateralize notes payable critically needed for the entity's continued existence?
• B)Are two or more authorized signatures required on checks that repay notes payable?
• C)Are the proceeds from notes payable used for the purchase of noncurrent assets?
• D)Are direct borrowings on notes payable authorized by the board of directors?

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Definitions:

Trespass

An unlawful entry onto someone's property without permission.

Accidental Tunneling

Unintended or unexpected creation of a passage or communication channel, often used in the context of computer networks or security breaches.

Reasonable Belief

A conclusion or perspective that a person can logically or justifiably hold, based on the information available to them at the time.

Actual Damage

Real, specific harm or loss suffered by an individual or entity, as opposed to hypothetical or potential harm.