Caroline is performing the audit of the capital acquisition and repayment cycle.She is currently auditing the payments of interest made during the year.The proper documentation that Caroline should use as supporting evidence of the payment is

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A copy of the note serves as the best supporting evidence of the payment of interest made during the year as it contains details like interest rate, principal amount, and maturity date. The bank reconciliation and notes payable sub-ledger don't provide enough information about the payment. Documentation of inquiries with management may be useful but is not sufficient by itself.

Caroline Is Performing the Audit of the Capital Acquisition and Repayment