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Which of the following is an accurate statement regarding the audit of the capital acquisition and ...

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Which of the following is an accurate statement regarding the audit of the capital acquisition and ...

Which of the following is an accurate statement regarding the audit of the capital acquisition and repayment schedule?

▸ When internal controls over notes payable are deficient, auditors are required to confirm the notes payable.

▸ As auditors perform tests of details of balances for balance-related audit objectives, the evidence obtained helps satisfy the notes payable presentation and disclosure requirements.

▸ The normal starting point for the audit of notes payable is a list of fixed asset acquisitions.

▸ The schedule of notes payable and accrued interest must be prepared regardless of the number of transactions involved.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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