An audit team's purpose in reviewing the documentation concerning the renewal of a note payable shortly after the balance-sheet date most likely is to obtain evidence concerning management's assertions about
A) Existence.
B) Valuation.
C) Completeness.
D) Classification.

Question

Quizplus · Accepted Answer

The audit team reviews the renewal of a note payable to ensure it is classified correctly as a long-term liability if it is renewed, rather than a current liability.

An Audit Team's Purpose in Reviewing the Documentation Concerning the Renewal