Which of the following will an auditor not perform when looking for additions to debt?
A)Trace the proceeds into the cash receipts records.
B)Examine canceled notes.
C)Obtain assurance regarding board approval of the debt through review of board meeting minutes.
D)Trace the proceeds into the bank statement.

Question

Quizplus · Accepted Answer

Examining canceled notes is not a procedure for looking for additions to debt but rather for verifying the repayment or extinguishment of existing debt. The other options (A, C, D) are relevant for identifying or verifying new debt additions.

Which of the Following Will an Auditor Not Perform When