Answered: During the review of loan contracts and…

Business

Accounting

During the review of loan contracts and agreements, the auditor would most likely figure out the following, except:

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 4CYBK

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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

During the review of loan contracts and agreements, the auditor would most likely figure out the following, except:

Choices

Related disclosures pertaining to assets pledged as collateral.

The accuracy of interest expense recorded by the entity.

The existence of loans.

The completeness of loans.

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