In order to make sure that loans are properly classified, the auditor would: a. Examine due dates on duplicate copies of loan agreements to determine whether all or part are a non-current liability. b. Examine the loan agreements to determine whether the company has obligations for payment. c. Trace the totals on the loans list to the general ledger. d. Examine corporate minutes for loan approval.
In order to make sure that loans are properly classified, the auditor would: a. Examine due dates on duplicate copies of loan agreements to determine whether all or part are a non-current liability. b. Examine the loan agreements to determine whether the company has obligations for payment. c. Trace the totals on the loans list to the general ledger. d. Examine corporate minutes for loan approval.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In order to make sure that loans are properly classified, the auditor would:
a. Examine due dates on duplicate copies of loan agreements to determine whether all or part are a non-current liability.
b. Examine the loan agreements to determine whether the company has obligations for payment.
c. Trace the totals on the loans list to the general ledger.
d. Examine corporate minutes for loan approval.
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