Recalculation of an approximate interest expense using the basis of average interests rates and overall monthly notes payable could detect what type of possible misstatement?

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Quizplus · Accepted Answer

Recalculating the interest expense using average interest rates and overall monthly notes payable allows for a more accurate calculation, and can reveal any misstatements or omissions related to interest expenses or notes payable. This would include potential errors in accrued interest, as well as the omission of a note payable. By using this calculation method, misstatements related to interest expense or notes payable should be detected. The other choices, such as misclassification of notes payable or interest expenses, would not necessarily be detected by the recalculated interest expense.

Recalculation of an Approximate Interest Expense Using the Basis of Average