Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 35

Which of the following questions would auditors most likely include on an internal control questionnaire for notes payable?
A) Are assets that collateralize notes payable critically needed for the entity's continued existence?
B) Are two or more authorized signatures required on checks that repay notes payable?
C) Are the proceeds from notes payable used to purchase noncurrent assets?
D) Are direct borrowings on notes payable authorized by the board of directors?