The audit objective which requires the auditor to determine that loans payable on the loans payable schedule are properly classified can be tested with the following procedure:
A) Review the notes to determine whether any are with related parties.
B) Confirm loans payable.
C) Examine corporate minutes for loan approval.
D) Examine notes, minutes, and bank confirmations for restrictions.

Question

Quizplus · Accepted Answer

The classification of loans payable involves determining whether they are with related parties, which can be assessed by reviewing the notes for related party transactions.

The Audit Objective Which Requires the Auditor to Determine That