The normal starting point for the audit of notes payable is

Question

Quizplus · Accepted Answer

The best starting point for the audit of notes payable is to obtain a schedule of notes payable and accrued interest from the client, which provides details of the outstanding balances and terms of the notes. This information helps the auditor to understand the completeness and accuracy of the notes payable account and to identify any potential risks of material misstatement. Although discussions with management and the assessment of materiality are important, they are not the normal starting point for the audit of notes payable. The minutes of the board of directors may provide information on the authorization and approval of the notes, but they are not directly relevant to the audit of notes payable.

The Normal Starting Point for the Audit of Notes Payable